Audited Financial Report: Inline XBRL

	Governmental Activities	Business Type Activities	Total Primary Government
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments	$ 13,441,679	$ -	$ 13,441,679
Accounts Receivable Net Of Allowance	1,133,315	-	1,133,315
Accrued Interest Receivable	25,257	-	25,257
Internal Balance	120,893	(120,893)	-
Prepaid Expenses	52,578	-	52,578
Total Current Assets	14,773,722	(120,893)	14,652,829
Noncurrent Assets:
Other Capital Assets	3,170,453	-	3,170,453
Notes And Loans Receivable Net Noncurrent	3,311,550	-	3,311,550
Capital Assets Not Being Depreciated	3,133,754	167,738	3,301,492
Capital Assets Being Depreciated Net	25,982,451	841,465	26,823,916
Total Noncurrent Assets	35,598,208	1,009,203	36,607,411
Total Assets	50,371,930	888,310	51,260,240

DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Of Resources Pension	1,285,641	-	1,285,641
Deferred Outflows Of Resources OPEB	-	-	-
Total Deferred Outflows of Resources	1,285,641	-	1,285,641

LIABILITIES
Current Liabilities:
Accounts Payable	149,907	2,671	152,578
Deposits Held for Others	-	5,500	5,500
Accrued Wages Payable	37	-	37
Unearned Revenue	332,166	-	332,166
Compensated Absences Payable Current	83,645	-	83,645
Other Current Liabilities	74,358	-	74,358
Total Current Liabilities	640,113	8,171	648,284
Noncurrent Liabilities:
Compensated Absences Payable Non Current	83,645	-	83,645
Net OPEB Liability	578,315	-	578,315
Net Pension Liability	2,759,739	-	2,759,739
Leases Payable Due In More Than One Year	244,640	-	244,640
Total Noncurrent Liabilities	3,666,339	-	3,666,339
Total Liabilities	4,306,452	8,171	4,314,623

DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Of Resources Pension	2,471,384	-	2,471,384
Deferred Inflows Of Resources OPEB	-	-	-
Total Deferred Inflows of Resources	2,471,384	-	2,471,384

NET POSITION
Net Investment In Capital Assets	29,116,205	1,009,203	30,125,408
Restricted Net Position For Other	9,890,048	-	9,890,048
Total Net Position	39,006,253	1,009,203	40,015,456

	Expenses	Charges For Services	Operating Grants And Contributions	Capital Grants And Contributions	Governmental Activities	Business Type Activities	Total Primary Government
PRIMARY GOVERNMENT
Governmental Activities:
General Government	$ 2,629,048	$ 437,626	$ 13,808	$ -	$ (2,177,614)	$ -	$ (2,177,614)
Public Safety Services	2,736,817	48,292	397,461	-	(2,291,064)	-	(2,291,064)
Public Works Services	2,509,096	331,218	2,344,113	44,634	210,869	-	210,869
Community and Economic Development Services	356,450	142,299	-	76,140	(138,011)	-	(138,011)
Parks and Recreation	729,729	42,903	-	-	(686,826)	-	(686,826)
Total Governmental Activities	8,961,140	1,002,338	2,755,382	120,774	(5,082,646)	-	(5,082,646)
Business-type Activities:
Convention Center Services	60,694	16,847	-	-	-	(43,847)	(43,847)
Total Business-type Activities	60,694	16,847	-	-	-	(43,847)	(43,847)
Total Primary Government	9,021,834	1,019,185	2,755,382	120,774	(5,082,646)	(43,847)	(5,126,493)

COMPONENT UNITS
Total Component Units	-	-	-	-	-	-	-

GENERAL REVENUES AND TRANSFERS
General revenues:
Property Tax					2,846,766	-	2,846,766
Special Assessments					1,348,657	-	1,348,657
Sales and Use Tax					563,908	-	563,908
Business License Tax					162,881	-	162,881
Fines and Forfeitures and Penalties					587,740	-	587,740
Payment in Lieu of Taxes					174,443	-	174,443
Investment Income					(281,502)	-	(281,502)
Other General Revenues					54,512	-	54,512
Gain (Loss) on Sale of Capital Assets					6,958	-	6,958
Total General Revenues					5,464,363	-	5,464,363
Transfers:
Total Transfers					-	-	-
Total General Revenues and Transfers					5,464,363	-	5,464,363

NET POSITION
Change in Net Position					381,717	(43,847)	337,870
Net position (deficit), beginning of year					44,498,018	923,986	45,422,004
Net position (deficit), end of year					44,879,735	880,139	45,759,874

	General Fund	Landscape Maintenance District	Successor Housing Agency	American Rescue Plan Act	Capital Improvement Program	Other Governmental Funds	Total Governmental Funds
ASSETS
Pooled Cash And Investments	$ 5,985,880	$ 693,391	$ 1,857,892	$ -	$ 2,674,360	$ 1,769,715	$ 12,981,238
Accounts Receivable Net Of Allowance	646,294	-	-	-	-	487,021	1,133,315
Accrued Interest Receivable	25,257	-	-	-	-	-	25,257
Other Assets	-	-	3,170,453	-	-	-	3,170,453
Notes Receivable	-	-	3,311,550	-	-	-	3,311,550
Prepaid Deposits	52,578	-	-	-	-	-	52,578
Due from Others	120,893	-	-	-	-	-	120,893
Travel Advances Receivable	-	-	-	-	-	-	-
Total Assets	6,830,902	693,391	8,339,895	-	2,674,360	2,256,736	20,795,284

LIABILITIES
Accounts Payable	1,826	54,858	-	-	67,916	24,992	149,592
Other Liabilities	71,658	-	-	-	-	2,700	74,358
Accrued Wages Payable	37	-	-	-	-	-	37
Compensated Absences Payable	83,645	-	-	-	-	-	83,645
Unearned Revenue	-	-	-	-	-	332,166	332,166
Total Liabilities	157,166	54,858	-	-	67,916	359,858	639,798

DEFERRED INFLOW OF RESOURCES
Other Deferred Inflows Of Resources	260,379	-	2,722,200	-	-	-	2,982,579
Total Deferred Inflows of Resources	260,379	-	2,722,200	-	-	-	2,982,579

FUND BALANCES
Fund Balance Nonspendable	173,471	-	-	-	-	-	173,471
Fund Balance Restricted	-	32,509	5,617,695	-	-	1,069,391	6,719,595
Fund Balance Committed	495,019	-	-	-	-	709,802	1,204,821
Fund Balance Assigned	-	606,024	-	-	2,606,444	117,685	3,330,153
Fund Balances Unassigned	5,744,867	-	-	-	-	-	5,744,867
Total Fund Balances	6,413,357	638,533	5,617,695	-	2,606,444	1,896,878	17,172,907
Total Liabilities, Deferred Inflows of Resources and Fund Balances	6,830,902	693,391	8,339,895	-	2,674,360	2,256,736	20,795,284

	Amount
Fund balances for governmental funds	17,172,907

CAPITAL ASSETS
Capital assets used in governmental activities are not current financial resources and therefore are not reported in the Governmental Funds Balance Sheet.
Non-depreciable capital assets	3,133,754
Depreciable capital assets (net of internal service fund assets of $493,547)	25,441,841

ACCRUAL OF NON-CURRENT REVENEUS AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because they are not available currently, but are taken into revenue in the statement of activities.	2,982,579

LONG-TERM ASSETS AND LIABILITIES

Long-term liabilities are not due and payable in the current period and therefore are not reported in the Governmental Funds Balance Sheet.
Net OPEB liability not reported on the Governmental Funds Balance Sheet	578,315
Compensated absences payable	83,645
Net pension liability not reported on the Governmental Funds Balance Sheet	2,759,739
Lease liability not reported on the Governmental Funds Balance Sheet	244,640

DEFERRED INFLOWS AND OUTFLOWS
Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance Sheet
Deferred outflows of resources for net pension liability	1,285,641
Deferred inflows of resources for net pension liability	2,471,384
Deferred outflows of resources for net OPEB liability
Deferred inflows of resources for net OPEB liability

ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the costs of certain activities to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the Government-wide Statement of Net Position.	1,000,736

Net Position of Governmental Activities	44,879,735

	General Fund	Landscape Maintenance District	Successor Housing Agency	American Rescue Plan Act	Capital Improvement Program	Other Governmental Funds	Total Governmental Funds
REVENUES
Property Tax	$ 2,846,766	$ -	$ -	$ -	$ -	$ -	$ 2,846,766
Grants and Entitlements Restricted for Specific Programs	-	-	111,400	-	-	-	111,400
Special Assessments	-	1,204,882	-	-	-	442,230	1,647,112
Sales and Use Tax	563,908	-	-	-	-	-	563,908
Business Licenses and Permits	162,881	-	-	-	-	-	162,881
Licenses and Permits and Franchise Fees	114,026	-	-	-	-	140,326	254,352
Fines and Forfeitures and Penalties	151,409	-	-	-	-	-	151,409
Grants, Contributions and Donations from Federal Governmental Entities	135,233	-	-	1,467,024	-	1,170,041	2,772,298
Vehicles Tax	-	-	-	-	-	-	-
Payment in Lieu of Taxes	174,443	-	-	-	-	-	174,443
Cable Franchise Fees	587,740	-	-	-	-	-	587,740
Charges for Services, Fees	305,645	-	-	-	-	-	305,645
Use of Money and Property	(185,018)	(24,383)	17,961	-	(80,986)	(52,490)	(324,916)
Other Revenues	40,844	-	-	-	-	648	41,492
Total Revenues	4,897,877	1,180,499	129,361	1,467,024	(80,986)	1,700,755	9,294,530

EXPENDITURES
General Government Services, Administration	2,570,417	-	-	-	-	126,650	2,697,067
Public Safety Services	2,684,319	-	-	-	-	130,541	2,814,860
Public Works Services	333,423	1,424,676	-	-	-	383,356	2,141,455
Community And Economic Development Services	299,175	-	-	-	-	-	299,175
Parks and Recreation Department	336,592	-	-	-	-	140,808	477,400
Capital Outlay	22,168	161,367	-	-	869,925	48,889	1,102,349
Total Expenditures	6,246,094	1,586,043	-	-	869,925	830,244	9,532,306
Excess (Deficiency) of Revenues Over (Under) Expenditures	(1,348,217)	(405,544)	129,361	1,467,024	(950,911)	870,511	(237,776)

OTHER FINANCING SOURCES (USES)
Other Financing Sources (Uses)	-	-	58,091	-	-	-	58,091
Transfers In	1,597,681	-	-	-	1,632,609	21,214	3,251,504
Transfers Out	-	(41,809)	-	(1,467,024)	-	(1,742,671)	(3,251,504)
Total Other Financing Sources (Uses)	1,597,681	(41,809)	58,091	(1,467,024)	1,632,609	(1,721,457)	58,091
Net Change in Fund Balances	249,464	(447,353)	187,452	-	681,698	(850,946)	(179,685)

FUND BALANCES
Beginning of year, restated	6,163,893	1,085,886	5,430,243	-	1,924,746	2,747,824	17,352,592
End of fiscal year	6,413,357	638,533	5,617,695	-	2,606,444	1,896,878	17,172,907

	Amount
Net Change in Fund Balances- Total Governmental Funds	179,685

Amounts reported for governmental activities in the Statement of Activities are different because:
ACCRUAL OF NON-CURRENT ITEMS
The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).
Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows)	74,942
Long-term compensated absences payable	745
Net change in pension liability and deferred inflows (outflows).	730,720
Unavailable revenues	113,947
Net change in lease liability	244,640

CAPITAL ASSET TRANSACTIONS
Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense
Capital asset acquisition, excluding internal service fund asset acquisitions.	1,217,507
Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425).	947,745

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY
Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities.	4,806

Change in Net Position of Governmental Activities on Statement of Activities	381,717

	Business Type Activities Endeavor Hall	Internal Service Funds
ASSETS
Current Assets:
Cash And Cash Equivalents And Investments	$ -	$ 460,441
Total Current Assets	-	460,441
Noncurrent Assets:
Land	167,738	-
Capital Assets Being Depreciated Net	841,465	540,610
Total Noncurrent Assets	1,009,203	540,610
Total Assets	1,009,203	1,001,051

LIABILITIES
Current Liabilities:
Accounts payable	2,671	315
Other Accounts Payable And Accrued Liabilities	-	-
Deposits Held for Others	5,500	-
Due to other funds	120,893	-
Total Current Liabilities	129,064	315
Noncurrent Liabilities:
Total Noncurrent Liabilities	-	-
Total Liabilities	129,064	315

NET POSITION
Net investment in capital assets	1,009,203	540,610
Unrestricted Net Position	(129,064)	460,126
Total Net Position	880,139	1,000,736

	Business Type Activities Endeavor Hall	Internal Service Funds
OPERATING REVENUES
Charges for Services	$ 16,847	$ 111,900
Total Operating Revenues	16,847	111,900

OPERATING EXPENSES
Benefits Expense	4,833	-
Expenses for Institutional Support	26,989	8,564
Depletion, Depreciation and Amortization Expense	28,872	100,425
Total Operating Expenses	60,694	108,989

NONOPERATING REVENUES (EXPENSES)
Gain (Loss) on Sale of Capital Assets	-	6,958
Investment Income	-	(14,675)
Total Nonoperating Revenues (expenses)	-	(7,717)
Income (loss) before capital contributions	(43,847)	(4,806)

CAPITAL CONTRIBUTIONS
Total Capital Contributions	-	-
Change in net position	(43,847)	(4,806)

NET POSITION
Net position, beginning of year	923,986	1,005,542
Net position, end of year	880,139	1,000,736

	Business Type Activities Endeavor Hall	Internal Service Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Proceeds from Sales and Services	$ 20,847	$ 111,900
Payments to suppliers	(24,734)	(4,001)
Payments to employees	(4,833)	-
Payments for Claims	-	(4,428)
Net cash provided by (used in) operating activities	(8,720)	103,471

CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES
Proceeds From Transfers In	8,720	-
Net cash flows from noncapital financing activities	8,720	-

CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES
Payments to Purchase Capital Assets	-	(153,184)
Proceeds from Sale of Capital Assets	-	6,958
Net cash provided by (used in) capital and related financing activities	-	(146,226)

CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from Interest on Investments	-	(14,675)
Net cash provided by (used in) investing activities	-	(14,675)
Net Increase (Decrease) in Cash and Cash Equivalents	-	(57,430)

CASH AND CASH EQUIVALENTS
Cash and cash equivalents, beginning of year	-	517,871
Cash and cash equivalents, end of year	-	460,441

STATISTICAL SECTION

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141

STATISTICAL SECTION

TABLE OF CONTENTS

This part of the City’s comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the City.

Page

Financial Trends

143

These schedules contain trend information to help the reader understand how the City’s financial performance and well-being have changed over time.

Revenue Capacity	151
These schedules contain information to help the reader assess the City’s	most
significant local revenue sources.
Debt Capacity	159

These schedules present information to help the reader assess the affordability of the City’s current levels of outstanding debt and the City’s ability to issue additional debt in the future.

Demographic and Economic Information

164

These schedules offer demographic and economic indicators to help the reader understand the environment within which the City’s financial activities take place.

Operating Information

165

These schedules contain service and infrastructure data to help the reader understand how the information in the City’s financial report relates to the services the City provides and the activities it performs.

142

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

		2013			2014		2015		2016
Governmental activities:
Net investment in capital assets	$	29,988,389	$		29,344,437	$	28,653,515	$	28,929,140
Restricted		5,071,942			3,470,831		2,024,193		7,783,815
Unrestricted		4,829,960			6,306,416		4,781,508		7,028,670
Total governmental activities net position		39,890,291			39,121,684		35,459,216		43,741,625
Business-type activities:
Net investment in capital assets		1,322,815			1,286,748		1,250,681		1,221,999
Restricted		-			-		-		-
Unrestricted		(130,382)			(49,038)		(44,572)		(56,305)
Total business-type activities net position		1,192,433			1,237,710		1,206,109		1,165,694
Primary government:
Net investment in capital assets		31,311,204			30,631,185		29,904,196		30,151,139
Restricted		5,071,942			3,470,831		2,024,193		7,783,815
Unrestricted		4,699,578			6,257,378		4,736,936		6,972,365
Total primary government net position	$	41,082,724		$	40,359,394	$	36,665,325	$	44,907,319

Source: City of Clayton Finance Department.

143

City of Clayton

Statistical Section

Net Position by Component - Last Ten Fiscal Years

(Accrual Basis of Accounting)

	2017			2018			2019			2020			2021			2022
$	29,349,667	$		28,976,510	$		29,790,706	$		29,780,115	$		28,793,685	$		29,116,205
	7,731,727			12,059,042			11,915,594			12,046,964			13,156,670			9,890,048
	7,835,030			3,836,715			3,009,835			3,433,238			2,492,751			5,873,482
	44,916,424			44,872,267			44,716,135			45,260,317			44,443,106			44,879,735
	1,184,742			1,147,485			1,110,485			1,073,743			1,038,076			1,009,203
	-			-			-			-			-			-
	(64,190)			(75,944)			(72,753)			(74,819)			(114,090)			(129,064)
	1,120,552			1,071,541			1,037,732			998,924			923,986			880,139
	30,534,409			30,123,995			30,901,191			30,853,858			29,831,761			30,125,408
	7,731,727			12,059,042			11,915,594			12,046,964			13,156,670			9,890,048
	7,770,840			3,760,771			2,937,082			3,358,419			2,378,661			5,744,418
$	46,036,976		$	45,943,808		$	45,753,867		$	46,259,241		$	45,367,092		$	45,759,874

144

			City of Clayton
			Statistical Section
Changes in Net Position - Last Ten Fiscal Years
	(Accrual Basis of Accounting)

						Fiscal Year
			2013			2014		2015			2016
Expenses
Governmental activities:
General government	$		1,186,567	$		1,249,238	$	1,119,567	$		1,051,461
Public works			1,346,320			2,118,015		2,139,918			1,975,653
Parks and recreation services			1,100,584			352,498		339,894			583,120
Community and economic development			446,259			410,413		405,941			362,248
Public safety			1,925,266			2,016,145		2,006,052			2,060,621
Interest and fiscal charges			-			-		-			-
Total governmental activities expenses			6,004,996			6,146,309		6,011,372			6,033,103
Business-type activities:
Community gym			-			-		-			-
Endeavor Hall			60,117			65,351		66,606			67,668
Total business-type activities expenses			60,117			65,351		66,606			67,668
Total primary government expenses		$	6,065,113		$	6,211,660	$	6,077,978		$	6,100,771
Program revenues
Governmental activities:
Charges for services:
General government	$		352,124	$		567,663	$	643,070	$		355,391
Public works			315,230			296,974		418,498			321,544
Parks and recreation services			-			608		14,337			73,501
Community and economic development			137,795			54,013		25,990			100,612
Public safety			36,899			14,631		13,862			49,326
Operating grants and contributions			587,384			683,492		157,397			836,833
Capital grants and contributions			-			-		-			22,200
Total governmental activities program revenues			1,429,432			1,617,381		1,273,154			1,759,407
Business-type activities:
Charges for services:
Community gym			-			-		-			-
Endeavor hall			14,860			19,545		25,818			27,253
Operating grants and contributions			-			-		-			-
Total business-type program revenues			14,860			19,545		25,818			27,253
Net revenues (expenses)
Governmental activities	$		(4,575,564)	$		(4,528,928)	$	(4,738,218)	$		(4,273,696)
Business-type activities			(45,257)			(45,806)		(40,788)			(40,415)
Total primary government net expense		$	(4,620,821)		$	(4,574,734)	$	(4,779,006)		$	(4,314,111)
General revenues and other changes in net position
Governmental activities:
Taxes:
Property taxes	$		1,691,803	$		1,862,734	$	2,302,278	$		2,256,780
Special parcel taxes			1,093,213			1,122,349		1,155,141			1,185,651
Sales and use taxes			353,525			370,330		397,544			372,705
Business license taxes			-			-		-			133,943
Other taxes			802,651			865,752		1,339,537			-
Franchise fees			-			-		-			516,607
Payments in lieu of taxes			-			-		-			154,852
Investment income			80,622			64,319		82,909			295,904
Miscellaneous			139,161			175,082		91,230			58,694
Gain/(loss) on sale of assets			(7,817)			-		624			792
Transfers			250,456			(688,709)		88,793			-
Total governmental activities			4,403,614			3,771,857		5,458,056			4,975,928
Business type activities:
Investment income/(loss)			-			393		175			-
Miscellaneous			-			-		4,316			-
Transfers			-			-		(88,793)			-
Total business-type activities			-			393		(84,302)			-
Extraordinary and Special Items
Governmental activities:
Extraordinary gain/(loss)			-			-		(200,000)			(230,786)
Business-type activities:
Special item gain/(loss)			-			-		93,489			-
Total primary government changes in net position
Governmental activities			(171,950)			(757,071)		519,838			471,446
Business-type activities			(45,257)			(45,413)		(31,601)			(40,415)
Total primary government		$	(217,207)		$	(802,484)	$	488,237		$	431,031

Source: City of Clayton Finance Department.

145

											City of Clayton
										Statistical Section
							Changes in Net Position - Last Ten Fiscal Years
										(Accrual Basis of Accounting)

							Fiscal Year
	2017			2018			2019			2020			2021			2022
$	1,174,069	$		1,305,562	$		1,457,326	$		2,781,523	$		1,796,454	$		2,629,048
	2,221,835			2,509,147			2,825,969			1,988,766			2,909,710			2,509,096
	676,790			667,687			718,267			452,535			592,433			729,729
	287,775			329,418			367,682			296,372			357,133			356,450
	2,075,082			2,538,912			2,536,880			2,521,690			2,980,000			2,736,817
	-			-			-			-			-			-
	6,435,551			7,350,726			7,906,124			8,040,886			8,635,730			8,961,140
	-			-			-			-			-			-
	67,393			76,901			58,455			63,631			73,117			60,694
	67,393			76,901			58,455			63,631			73,117			60,694
$	6,502,944		$	7,427,627		$	7,964,579		$	8,104,517		$	8,708,847		$	9,021,834
$	349,220	$		397,668	$		397,436	$		438,906	$		430,894	$		437,626
	324,308			355,625			356,347			338,877			328,731			331,218
	70,394			66,868			71,681			43,635			17,622			42,903
	113,336			127,487			96,596			113,600			133,404			142,299
	52,497			44,545			41,195			65,674			51,259			48,292
	813,168			900,239			825,018			1,024,732			893,718			2,755,382
	885,398			526,452			570,049			559,220			42,363			120,774
	2,608,321			2,418,884			2,358,322			2,584,644			1,897,991			3,878,494
	-			-			-			-			-			-
	22,251			27,890			24,642			24,702			(1,442)			16,847
	-			-			-			-			-			-
	22,251			27,890			24,642			24,702			(1,442)			16,847
$	(3,827,230)	$		(4,931,842)	$		(5,547,802)	$		(5,456,242)	$		(6,737,739)	$		(5,082,646)
	(45,142)			(49,011)			(33,813)			(38,929)			(74,559)			(43,847)
$	(3,872,372)		$	(4,980,853)		$	(5,581,615)		$	(5,495,171)		$	(6,812,298)		$	(5,126,493)
$	2,339,221	$		2,345,067	$		2,463,898	$		2,587,812	$		2,722,906	$		2,846,766
	1,220,427			1,254,911			1,256,011			1,295,034			1,309,373			1,348,657
	455,387			436,560			483,741			512,868			510,029			563,908
	135,866			154,397			175,153			140,620			90,872			162,881
	-			-			-			-			-			-
	541,138			547,765			523,129			565,893			567,350			587,740
	157,949			161,108			164,331			167,677			171,029			174,443
	119,201			287,595			255,272			684,244			508,256			(281,502)
	31,216			23,118			39,211			40,516			38,972			54,512
	1,624			(893)			30,924			5,760			1,741			6,958
	-			-			-			-			-			-
	5,002,029			5,209,628			5,391,670			6,000,424			5,920,528			5,464,363
	-			-			4			121			(379)			-
	-			-			-			-			-			-
	-			-			-			-			-			-
	-			-			4			121			(379)			-
	-			-			-			-			-			-
	-			-			-			-			-			-
	1,174,799			277,786			(156,132)			544,182			(817,211)			381,717
	(45,142)			(49,011)			(33,809)			(38,808)			(74,938)			(43,847)
$	1,129,657		$	228,775		$	(189,941)		$	505,374		$	(892,149)		$	337,870

146

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

				Fiscal Year Ending June 30
		2013		2014		2015		2016
General fund:
Nonspendable	$	-	$	1,242,346	$	1,029,377	$	308,064
Restricted		-		-		-		-
Committed		-		-		-		-
Assigned		182,671		34,542		-		278,853
Unassigned		5,199,914		3,871,849		4,509,255		5,031,142
Total general fund		5,382,585		5,148,737		5,538,632		5,618,059
All other governmental funds:
Nonspendable		-		-		-		3,633,951
Restricted		-		1,399,064		1,303,081		2,150,476
Committed		5,071,942		829,421		721,112		667,134
Assigned		-		2,354,314		3,309,135		2,684,533
Unassigned		(425,380)		(2,550)		(2,550)		(2,550)
Total other governmental funds		4,646,562		4,580,249		5,330,778		9,133,544
Total governmental funds	$	10,029,147	$	9,728,986	$	10,869,410	$	14,751,603
Source: City of Clayton Finance Department.
Source: City of Clayton Finance Department.

147

City of Clayton

Statistical Section

Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year Ending June 30

	2017		2018		2019		2020		2021		2022
$	72,518	$	81,790	$	320,232	$	100,163	$	120,623	$	173,471
	-		-		-		-		-		-
	-		-		-		-		177,496		495,019
	415,239		281,930		102,228		409,482		-		-
	5,429,524		5,302,751		5,337,685		5,654,925		5,810,862		5,744,867
	5,917,281		5,666,471		5,760,145		6,164,570		6,108,981		6,413,357

3,696,238	-		-		-			-		-
2,122,471	6,293,306		6,403,413		6,452,671			7,283,999		6,719,595
494,241	571,915		647,611		669,841			643,461		709,802
3,026,942	3,542,680		2,744,642		3,167,804			3,261,239		3,330,153
(2,550)	(2,550)		(223,171)		(23,566)			-		-
9,337,342		10,405,351		9,572,495		10,266,750		11,188,699		10,759,550
$ 15,254,623	$ 16,071,822		$ 15,332,640		$ 16,431,320		$	17,297,680	$	17,172,907

148

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

				Fiscal Year
		2013		2014		2015		2016
Revenues
Property taxes	$	1,691,803	$	1,862,734	$	2,302,278	$	2,256,780
Program income		10,546		10,668		10,063		81,400
Special parcel taxes and assessments		1,232,280		1,260,823		1,287,748		1,437,156
Sales and use taxes		353,525		370,330		397,544		372,705
Business license taxes and fees		-		-		-		133,943
Permits, licenses and fees		402,661		290,598		306,545		194,261
Fines, forfeitures and penalties		93,328		78,173		72,635		84,270
Intergovernmental		836,041		967,729		1,066,757		964,539
Motor vehicle in-lieu fees		-		4,703		4,590		4,554
Other in-lieu fees		145,921		148,839		151,816		154,852
Franchise fees		479,765		504,867		501,597		516,607
Service charges		125,387		338,626		366,080		342,308
Use of money and property		80,579		62,642		81,408		290,966
Other revenue		138,528		175,538		91,131		48,517
Total revenues		5,590,364		6,076,270		6,640,192		6,882,858
Expenditures
Current
General government		957,680		1,118,026		1,018,852		1,068,970
Public works		1,502,599		1,293,402		1,342,373		1,237,683
Parks and recreation services		356,445		352,498		349,862		375,554
Community and economic development		446,259		410,413		410,972		379,162
Public safety		1,867,432		1,950,034		2,005,607		2,281,621
Capital outlay		2,370,825		393,505		260,895		1,275,563
Debt service
Principal		-		-		-		-
Interest and fiscal charges		-		-		-		-
Total expenditures		7,501,240		5,517,878		5,388,561		6,618,553
Revenues over (under) expenditures		(1,910,876)		558,392		1,251,631		264,305
Other financing sources (uses)
Unrealized gains (losses)		-		-		-		-
Transfers in		2,221,820		524,187		600,458		1,026,538
Transfers out		(1,971,364)		(603,341)		(511,665)		(1,177,781)
Total other financing sources (uses)		250,456		(79,154)		88,793		(151,243)
Revenues and other financing sources over (under)
expenditures and other financing uses		(1,660,420)		479,238		1,340,424		113,062
Special and extraordinary items
Special item gain (loss)		-		(90,690)				-
Extraordinary gain (loss)		-		-		(200,000)		(230,786)
Total special and extraordinary items		-		(90,690)		(200,000)		(230,786)
Change in fund balances	$	(1,660,420)	$	388,548	$	1,140,424	$	(117,724)
Ratio of Total Debt Service Expenditures to
Ratio of Total Debt Service Expenditures to
Noncapital Expenditures		0.00		0.00		0.00		0.00

Source: City of Clayton Finance Department

149

City of Clayton

Statistical Section

Changes in Fund Balances of Governmental Funds - Last Ten Fiscal Years

(Modified Accrual Basis of Accounting)

Fiscal Year

	2017		2018		2019		2020		2021		2022
$	2,339,221	$	2,345,067	$	2,463,898	$	2,463,898	$	2,722,905	$	2,846,766
	86,400		91,400		146,400		146,400		106,400		111,400
	1,465,905		1,522,187		1,546,399		1,546,399		1,606,706		1,647,112
	455,387		436,560		483,741		483,741		510,029		563,908
	135,866		154,397		175,153		175,153		90,872		162,881
	209,026		356,052		212,242		212,242		172,297		254,352
	92,662		110,787		82,375		82,375		118,766		151,409
	1,706,688		1,178,659		1,312,528		1,312,528		911,240		2,772,298
	-		-		-		-		-		-
	157,949		161,108		164,331		164,331		171,029		174,443
	541,138		547,765		523,129		523,129		567,350		587,740
	311,796		329,164		325,078		325,078		297,393		305,645
	118,210		274,244		385,696		385,696		132,791		(324,916)
	40,186		23,168		35,723		35,723		30,657		41,492
	7,660,434		7,530,558		7,856,693		7,856,693		7,438,435		9,294,530
	1,194,606		1,183,609		1,317,973		1,317,973		1,547,319		2,697,067
	1,519,992		1,592,903		1,621,629		1,621,629		1,908,291		2,141,455
	458,294		433,764		477,266		477,266		349,854		477,400
	309,048		317,284		352,163		352,163		318,173		299,175
	2,265,845		2,363,298		2,365,339		2,365,339		2,605,103		2,814,860
	1,409,599		654,531		2,146,778		2,146,778		213,610		1,102,349
	-		-		-		-		-		-
	-		-		-		-		-		-
	7,157,384		6,545,389		8,281,148		8,281,148		6,942,350		9,532,306
	503,050		985,169		(424,455)		(424,455)		496,085		(237,776)
	-		-		(214,727)		(214,727)		370,275		58,091
	497,960		481,974		1,261,171		1,261,171		494,175		3,251,504
	(497,960)		(649,974)		(1,361,171)		(1,361,171)		(494,175)		(3,251,504)
	-		(168,000)		(314,727)		(314,727)		370,275		58,091
	503,050		817,169		(739,182)		(739,182)		866,360		(179,685)
	-		-		-		-		-		-
	-		-		-		-		-		-
	-		-		-		-		-		-
$	503,050	$	817,169	$	(739,182)	$	(739,182)	$	866,360	$	(179,685)

	0.00		0.00		0.00		0.00		0.00		0.00

150

City of Clayton

Statistical Section

Property Tax Levies and Collections

Last Ten Fiscal Years

Property Tax Collections

5,000,000
5,000,000
4,500,000
4,500,000
4,000,000
4,000,000
3,500,000
3,500,000
3,000,000
3,000,000
2,500,000
2,500,000
2,000,000
2,000,000
1,500,000
1,500,000
1,000,000
1,000,000
500,000
500,000
-
-	2013		2014	2015	2016	2017	2018	2019	2020		2021	2022
	2013		2014	2015	2016	2017	2018	2019	2020		2021	2022
						Fiscal Years

					Collected within the Fiscal Year
						of the Levy				Total Collections to Date
Fiscal Year		Total Tax Levy for					Percentage of						Percentage of
Ended June 30			Fiscal Year ¹		Amount		Levy			Amount			Levy
2013			1,862,734			1,862,734	100%				1,862,734	100%
2014			2,302,278			2,302,278	100%				2,302,278	100%
2015			2,256,780			2,256,780	100%				2,256,780	100%
2016			2,339,221			2,339,221	100%				2,339,221	100%
2017			3,599,978			3,599,978	100%				3,599,978	100%
2018			3,719,909			3,719,909	100%				3,719,909	100%
2019			2,587,812			2,587,812	100%				2,587,812	100%
2020			4,170,045			4,170,045	100%				4,170,045	100%
2021			4,329,611			4,329,611	100%				4,329,611	100%
2022			4,605,278			4,605,278	100%				4,605,278	100%

Source: City of Clayton Finance Department

Property tax levies above include secured and unsecured general ad valorem property taxes, restricted local special parcel taxes, and property taxes pertaining to the Redevelopment Property Tax Trust Fund.
The City is enrolled in the "Teeter" Plan, where the County remits the entire amount levied and handles all delinquencies, retaining the interest and penalties.

151

City of Clayton

Statistical Section

Assessed Value and Estimated Actual Value of Taxable Property

Last Ten Fiscal Years

Net Taxable Assessed Value

Millions

$2,500

$2,000

$1,500

$1,000

$500

$‐

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Years

Fiscal Year						SBE		Net Total Assessed		Total Direct
Ended June 30		Secured		Unsecured		Nonunitary		Valuation		Tax Rate ²
2013	1,592,441,490		12,107,626		-		1,604,549,116		34.145%
2014	1,724,741,279		12,046,811		-		1,736,788,090		6.992%
2015	1,855,952,809		10,423,772		-		1,866,376,581		6.587%
2016	1,966,021,862		24,268,730		-		1,990,290,592		6.627%
2017	2,052,672,378		24,551,781		-		2,077,224,159		6.642%
2018	2,138,664,468		22,857,474		-		2,161,521,942		6.650%
2019	2,238,046,407		24,573,625		-		2,262,620,032		6.667%
2020	2,335,781,999		28,167,199		-		2,363,949,198		6.684%
2021	2,419,252,507		28,191,208		-		2,447,443,715		6.697%
2022	2,503,001,127		31,341,543				2,534,342,670		6.697%

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.

152

City of Clayton

Statistical Section

Taxable Assessed Value By Source

Last Ten Fiscal Years

			Fiscal Year Ending June 30
Category			2013			2014			2015			2016
Residential ¹	$		1,525,145,282	$		1,664,638,727	$		1,797,596,765	$		1,904,368,929
Commercial			42,498,296			39,271,189			38,942,508			41,544,210
Dry Farm
Gov't Owned						2,509,634			2,521,025			2,571,392
Institutional			2,460,428			2,509,634			2,521,025			2,571,392
Irrigated			126,707			129,240
Miscellaneous			764,183			197,555			198,449			202,412
Recreational			5,364,139			5,364,585			5,364,688			5,365,145
Vacant			16,082,455			12,630,349			11,329,374			11,969,774
Unsecured			12,107,626			12,046,811			10,423,772			24,268,730
Exempt ²			(24,547,599)			(25,038,500)			(26,156,667)			(26,679,230)
Unknown			-			-			-			-
Totals		$	1,604,549,116		$	1,736,788,090		$	1,866,376,581		$	1,990,290,592
Total Direct Rate
Total Direct Rate			0.34145			0.06992			0.06587			0.06627

Taxable Assessed Value By Source

Millions

$2,500

$2,400

$2,300

$2,200

$2,100

$2,000

$1,900

$1,800

$1,700

$1,600

$1,500

2013

2014

2015

2016

2017

2018

2019

2020

2022

Fiscal Year Ending June 30

Category

Residential ¹

Commercial

Dry Farm

Gov't Owned

Institutional

Irrigated

Miscellaneous

Recreational

Vacant

Unsecured

Exempt ²

Unknown

Source: HdL, Coren & Cone, Contra Costa County Assessor Tax Rolls

In 1978 the voters of the State of California passed Proposition 13 which limited property taxes to a maximum rate of 1.0% based up on the assessed value of the property being taxed. Each year, the assessed value of property may be increased by an "inflation factor" (limited to the maximum increase of 2.0%). With few exceptions, property is only reassessed at the time that it is sold to a new owner. At that point, the new assessed value is reassessed at the purchase price of the property sold. The assessed valuation data shown above represents the only data currently available with respect to the actual market value of taxable property and is subject to the limitations described above.
Exempt values are not included in total.
California cities do not set their own direct tax rate. The State Constitution establishes the rate at 1.0% and allocates a portion of that amount by an annual calculation to all the taxing entities within a tax rate area. The City of Clayton

153

										City of Clayton
										Statistical Section
							Taxable Assessed Value By Source
										Last Ten Fiscal Years


				Fiscal Year Ending June 30
	2017			2018			2019			2020			2021			2022
$	1,988,952,192	$		2,067,562,369	$		2,165,479,800	$		2,266,477,116	$		2,348,456,415	$		2,430,095,644
	41,858,935			47,590,673			47,779,713			48,208,120			49,037,518			50,373,722
							11,134,894			11,399,590			11,865,579			12,060,444
	2,610,603			2,662,812			3,253,330			2,729,354			2,783,939			2,812,779
	205,496			209,603			129,549			140,719			143,532			145,018
	6,302,648			7,403,121			7,402,753			4,957,742			5,058,784			5,055,770
	12,742,504			13,235,890			2,866,368			1,869,358			1,906,740			2,457,750
	24,551,781			22,857,474			24,573,625			28,167,199			28,191,208			31,341,543
	(27,086,036)			(27,627,706)			(28,243,119)			(28,807,933)			(29,384,046)			(29,688,415)
	-			-			-			-			-			-
$	2,077,224,159		$	2,161,521,942		$	2,262,620,032		$	2,363,949,198		$	2,447,443,715		$	2,534,342,670

	0.06642			0.06650			0.06667			0.06684			0.06697			0.06711

154

City of Clayton

Statistical Section

Property Tax Rates - Direct and Overlapping Governments

Last Ten Fiscal Years (Rate per $100 of Assessed Value)

			Fiscal Year Ending June 30
	2012	2013		2014		2015
City Direct Rates:
City of Clayton General Fund ¹	0.06628	0.06628		0.06628		0.06628
Clayton Light Maintenance District No. 1 ²	0.01039	0.01039		0.01039		0.01039
Direct and Overlapping Rates:
Basic Levy ³	1.00000	1.00000		1.00000		1.00000
Bay Area Rapid Transit (BART) Bond	0.00410	0.00430		0.00750		0.00450
Contra Costa Community College Bond	0.01440	0.00870		0.01330		0.02520
Contra Costa Water Land Levy	0.00510	0.00450		0.00420		0.00370
East Bay Regional Park Bond	0.00710	0.00510		0.00780		0.00850
Mt. Diablo School Bond	0.06120		0.08710		0.07400	0.08530
Total Direct and Overlapping Rates	1.09190		1.10970		1.10680	1.12720

City's Share of 1% Levy Per Prop 13 ³	0.06628	0.06628		0.06628		0.06628
Redevelopment Rate ⁴	1.01220	-		-		-
Total Direct Rate ⁵	0.34460	0.34145		0.06992		0.06587

Source: HdL, Coren & Cone, Contra Costa County Assessor 2010-11 to 2019-20 tax rate table.

City's share of 1.0% basic levy is based on the City's share of the general fund tax rate area with the largest net taxable value within the City. Tax Rate Area 13-015 is represented here for this report.
City's share of 1.0% basic levy is based on the City's share of the Light Maintenance District No. 1 tax rate area with the largest net taxable value within the City. Tax Rate Area 13-002 is represented here for this report.
In 1978, California voters passed Proposition 13 which caps the property tax rate at a 1.00% fixed amount. This 1.00% is shared by all taxing agencies for which the subject property resides within. In addition to the 1.00% fixed amount, property owners are charged taxes as a percentage of assessed property values for the payment of voter approved bonds from various agencies.

Redevelopment rate is based on the largest RDA tax rate area and only includes rate(s) from indebtedness adopted prior to 1989 per California State statute. RDA direct and overlapping rates are applied only to the incremental property values. The approval of ABX1 26 eliminated Redevelopment from the State of California for the fiscal year 2012-13 and years thereafter.
Total direct rate is the weighted average of all individual direct rates applied to by the government preparing the statistical section information and excludes revenues derived from aircraft. Beginning in 2013-14 the total direct rate no longer includes revenue generated from the former redevelopment tax rate areas. Challenges to recognized enforceable obligations are assumed to have been resolved during 2012-13. For the purposes of this report, residual revenue is assumed to be distributed to the City in the same proportions as general fund revenue.

155

						City of Clayton
						Statistical Section
		Property Tax Rates - Direct and Overlapping Governments
			Last Ten Fiscal Years (Rate per $100 of Assessed Value)


				Fiscal Year Ending June 30
2016		2017		2018		2019		2020	2021		2022
0.06628	0.06628		0.06628		0.06628		0.06628		0.06628	0.06628
0.01039	0.01039		0.01039		0.01039		0.01039		0.01039	0.01039
1.00000	1.00000		1.00000		1.00000		1.00000		1.00000	1.00000
0.00260	0.00800		0.00840		0.00700		0.01200		0.01390	0.00600
0.02200	0.01200		0.01140		0.01100		0.01880		0.01610	0.01760
0.00350	0.00320		0.00300		0.00280		0.00260		0.00250	0.00230
0.00670	0.00320		0.00210		0.00210		0.00940		0.00140	0.00200
0.08120		0.07640		0.07900		0.09250		0.09080	0.09090		0.08980
1.11600		1.10280		1.10390		1.11540		1.13360	1.12480		1.11770

0.06628	0.06628		0.06628		0.06628		0.06628		0.06628	0.06628
-	-		-		-		-		-	-
0.06627	0.06642		0.06650		0.06667		0.06684		0.06697	0.06697

156

City of Clayton

Statistical Section

Principal Property Tax Payers

Current Year and Nine Years Ago

				Fiscal Year Ending June 30, 2012
Property Owner		Primary Use, Primary Agency				Secured
Property Owner		Primary Use, Primary Agency		Parcels		Value		% of Net AV
1) Safeway Stores, Inc ¹		Commercial, Successor Agency		1	$	10,850,709		0.68%
2) Clayton Station Shopping Center ¹		Commercial, Successor Agency	4			9,416,419	0.59%
3)	Albert D. Jr. & Sandra Seeno Trust	Vacant, Clayton General Fund	1			6,100,000	0.38%
4) NGP Realty Sub LP		Recreational, Successor Agency	17			5,362,963	0.34%
5)	Diamond Terrace Investors	Commercial, Successor Agency	1			5,295,820	0.33%
6)	Endashiian LLC	Commercial, Successor Agency	1			3,332,044	0.21%
7)	Comcast	Unsecured, Successor Agency	-			-	0.00%
8) Village Oaks LLC		Commercial, Successor Agency	2			2,748,766	0.17%
9) Ocean West Nevada Corporation		Commercial, Successor Agency	1			2,336,664	0.15%
10) Joe Leggallet Trust		Institutional, Successor Agency	1			2,128,538	0.13%
	Top Ten Total
	Top Ten Total			29	$	47,571,923		2.99%
	City Total
	City Total				$	1,592,441,490

				Fiscal Year Ending June 30, 2022
Property Owner		Primary Use, Primary Agency				Secured
Property Owner		Primary Use, Primary Agency		Parcels		Value		% of Net AV
1)	Comcast	Unsecured, Clayton General Fund		-	$	-		0.00%
2) Safeway Stores, Inc ¹		Commercial, Successor Agency	1			11,685,859	0.47%
3) Clayton Station Shopping Center ¹		Commercial, Successor Agency	4			10,926,808	0.44%
4)	Albert D. Jr. & Sandra Seeno Trust	Dry Farm, Clayton General Fund	1			8,660,000	0.35%
5) 1026 Oak LLC		Commercial, Successor Agency	1			5,140,133	0.21%
6)	William Patrick Jordan Trust	Residential, Successor Agency	6			4,724,947	0.19%
7)	Elaine HOM	Commercial, Successor Agency	1			4,674,799	0.19%
8)	Endashiian LLC	Commercial, Successor Agency	1			3,866,506	0.15%
9) Village Oaks LLC		Commercial, Successor Agency	2			3,189,663	0.13%
10) Empire Acres LLC		Residential, Successor Agency	5			2,716,014	0.11%
	Top Ten Total
	Top Ten Total			22	$	55,584,729		2.22%
	City Total
	City Total				$	2,503,001,127

Source: HdL, Coren & Cone, Contra Costa County Assessor 2011-12 & 2021-22 Combined Tax Rolls & the SBE Non-Unitary Tax Roll

Pending appeals on parcels

157

							City of Clayton
							Statistical Section
					Principal Property Tax Payers
				Current Year and Nine Years Ago


		Fiscal Year Ending June 30, 2012
		Unsecured					Combined
Parcels		Value		% of Net AV			Value		% of Net AV
-	$	-		0.00%		$	10,850,709		0.68%
-		-	0.00%				9,416,419	0.59%
-		-	0.00%				6,100,000	0.38%
-		-	0.00%				5,362,963	0.33%
-		-	0.00%				5,295,820	0.33%
-		-	0.00%				3,332,044	0.21%
4		2,937,441	24.26%				2,937,441	0.18%
-		-	0.00%				2,748,766	0.17%
-		-	0.00%				2,336,664	0.15%
-		-	0.00%				2,128,538	0.13%

4	$	2,937,441		24.26%		$	50,509,364		3.15%

	$	12,107,626				$	1,604,549,116

		Fiscal Year Ending June 30, 2022
		Unsecured					Combined
Parcels		Value		% of Net AV			Value		% of Net AV
6	$	22,962,583		73.27%		$	22,962,583		0.91%
-		-	0.00%				11,685,859	0.46%
-		-	0.00%				10,926,808	0.43%
-		-	0.00%				8,660,000	0.34%
-		-	0.00%				5,140,133	0.20%
-		-	0.00%				4,724,947	0.19%
-		-	0.00%				4,674,799	0.18%
-		-	0.00%				3,866,506	0.15%
-		-	0.00%				3,189,663	0.13%
-		-	0.00%				2,716,014	0.11%

6	$	22,962,583		73.27%		$	78,547,312		3.10%

	$	31,341,543				$	2,534,342,670

158

City of Clayton

Statistical Section

Ratios of Debt Outstanding

Last Ten Fiscal Years

Total Outstanding Debt

2013 2014 2015 2016 2017 2018 2019 2020 2021

Fiscal Year

Fiscal Year		Tax Allocation
Ended				Percentage of Total		Percent of
June 30		Bonds ¹		Assessed Value		Personal Income		Per Capita
2013	-		0.000%		0.000%		-
2014	-		0.000%		0.000%		-
2015	-		0.000%		0.000%		-
2016	-		0.000%		0.000%		-
2017	-		0.000%		0.000%		-
2018	-		0.000%		0.000%		-
2019	-		0.000%		0.000%		-
2020	-		0.000%		0.000%		-
2021	-		0.000%		0.000%		-
2022	-		0.000%		0.000%		-

Source: City of Clayton Finance Department.

The balance of Tax Allocation Bonds was transferred to the Redevelopment Successor Agency as of February 1, 2012.

159

City of Clayton

Statistical Section

Computation of Direct and Overlapping Debt

June 30, 2022

						Percent
			Gross Bonded Debt			Applicable		Net
Overlapping Debt				Balance		to City		Bonded Debt
100300	County General	$		393,729,873	1.081		$	3,622,597
202000	Contra Costa Fire			26,670	2.343			623,330
400800	San Francisco Bay Area Rapid Transit District			660,703,057	1.081			7,150,426
402700	East Bay Regional Park District			77,146,356	1.081			834,913
759500	Mt. Diablo 2002 Bond			244,095,000	5.282			12,929,512
759600	Mt. Diablo 2010 Bond			269,216,615	5.282			14,260,183
759708	Mt. Diablo 2018 Bond			14,538,000	5.282			770,066
792100	Contra Costa Community College 2002 Bond			311,230,151	1.085			3,379,442
792200	Contra Costa Community College 2006 Bond			354,509,849	1.085			3,849,388
792300	Contra Costa Community College 2014 Bond			271,130,000	1.085			2,944,021

Total Overlapping Debt			$	50,363,878
2021-22 Assessed Valuation: $1,693,258,542 after deducting $841,084,128 incremental value.

Debt to Assessed Valuation Ratios:	Direct Debt	0.00%
	Overlapping Debt	2.97%
	Total Debt	2.97%

Source: HdL, Coren & Cone, Contra Costa County Assessor & Auditor combined 2020-21 lien date tax rolls.

This report reflects debt which is being repaid through voter-approved property tax indebtedness. It excludes mortgage revenue, tax allocation bonds, interim financing obligations, non-bonded capital lease obligations, and certificates of participation.

Overlapping governments are those that coincide at least in part, with the geographic boundaries of the city. The percentage of overlapping debt applicable is estimated by using taxable assessed values. Applicable percentages were estimated by determining the portion of another governmental unit's taxable assessed value that is within the city's boundaries and dividing it by each unit's total taxable assessed value.

160

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

				Fiscal Year Ending
		2013			2014			2015			2016
Assessed valuation	$	1,580,001,517	$		1,711,749,590	$		1,840,219,914	$		1,963,611,362
Add back exempted real property		24,547,599			25,038,500			26,156,667			26,679,230
Total assessed valuation	$	1,604,549,116	$		1,736,788,090	$		1,866,376,581	$		1,990,290,592
Debt limit percentage ¹
Debt limit percentage ¹		3.75%			3.75%			3.75%			3.75%
Debt limit	$	60,170,592	$		65,129,553	$		69,989,122	$		74,635,897
Total net debt applicable to limit	$	-		$	-		$	-		$	-
Legal Debt margin	$	60,170,592	$		65,129,553	$		69,989,122	$		74,635,897
Total debt applicable to the limit as a
Total debt applicable to the limit as a
percentage of debt limit		0.00%			0.00%			0.00%			0.00%

Source: City of Clayton Finance Department.

The government code of the State of California provides for a legal debt limit of 15% of gross assessed valuation. However, this provision was enacted when assessed valuation was based upon 25% of market value. Effective with the 1981-82 fiscal year, each parcel is now assessed at 100% of market value (as of the most recent change in ownership for that parcel). Although the statutory debt limit has not been amended by the State since this change, the percentages presented in the above computations have been proportionately modified to 3.75% (25% of 15%) for the purpose of this calculation in order to be consistent with the computational effect of the debt limit at the time of the

161

City of Clayton

Statistical Section

Legal Debt Margin

Last Ten Fiscal Years

							Fiscal Year Ending
	2017			2018			2019			2020		2021		2022
$	2,050,138,123	$		2,133,894,236	$		2,234,376,913	$		2,335,141,265	$	2,418,059,669	$	2,504,654,255
	27,086,036			27,627,706			28,243,119			28,807,933		29,384,046		29,688,415
$	2,077,224,159	$		2,161,521,942	$		2,262,620,032	$		2,363,949,198	$	2,447,443,715	$	2,534,342,670

	3.75%			3.75%			3.75%			3.75%		3.75%		3.75%
$	77,895,906	$		81,057,073	$		84,848,251	$		88,648,095	$	91,779,139	$	95,037,850
$	-		$	-		$	-		$	-	$	-	$	-
$	77,895,906	$		81,057,073	$		84,848,251	$		88,648,095	$	91,779,139	$	95,037,850

	0.00%			0.00%			0.00%			0.00%		0.00%		0.00%

162

City of Clayton

Statistical Section

Bonded Debt Pledged Revenue Coverage

Last Ten Fiscal Years

				Tax Allocation Bonds
Fiscal Year				Debt Service ¹
Ended

June 30		Tax Increment		Principal		Interest		Coverage Ratio
2013		-		-		-		-
2014	-		-		-		-
2015	-		-		-		-
2016	-		-		-		-
2017	-		-		-		-
2018	-		-		-		-
2019	-		-		-		-
2020	-		-		-		-
2021	-		-		-		-
2022	-		-		-		-

Source: City of Clayton Finance Department.

The balance of the tax allocation bonds was transferred to the Successor Agency as of February 1, 2012. Principal and interest payments are recorded through January 31, 2012.

163

City of Clayton

Statistical Section

Demographic and Economic Statistics

Last Ten Fiscal Years

City Population

	11,800
	11,600
Population	11,400
	11,200

	11,000
	10,800
	10,600
	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020

Year ending December 31

										Contra Costa		City
		City		Personal Income		Per Capita Personal		Unemployment				Population %
Calendar Year		Population		(in Thousands)		Income		Rate		County Population ¹		of County
2011	10,996		577,972		52,562		2.5%		1,056,064		1.04%
2012	11,093		562,914		50,745		1.7%		1,065,117		1.04%
2013	11,200		567,885		50,704		1.4%		1,074,702		1.04%
2014	11,209		581,063		51,839		5.4%		1,087,008		1.03%
2015	11,209		620,092		55,320		4.4%		1,102,871		1.02%
2016	11,284		628,783		55,723		3.9%		1,123,429		1.00%
2017	11,431		656,122		57,398		3.1%		1,149,363		0.99%
2018	11,653		694,323		59,583		1.8%		1,155,879		1.01%
2019	11,337		776,778		68,517		1.4%		1,153,561		0.98%
2020	11,268		817,954		72,590		5.3%		1,165,927		0.97%
2021	10,863		761,054		70,059		6.1%		1,156,555		0.94%

Source: California State Department of Finance Price and Population Information letter to local governments. Source of other information shown: HdL, Coren & Cone, Demographic and Economic Statistics Report.

164

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

		Fiscal Year Ending June 30
Function:	2013	2014		2015	2016
Function:
General Government:
Management Services	2.00	2.00		2.00	2.00
Finance	2.30	2.30		2.30	2.30
City Clerk/Human Resources	1.00	1.00		1.00	1.00
Public Safety:	5.30		5.30	5.30	5.30
Public Safety:
Sworn Officers	11.00	11.00		11.00	11.00
Non-Sworn/Administration	2.00	2.00		2.00	2.00
	13.00		13.00	13.00	13.00
Public Works ¹	3.50	3.40		3.10	3.50
Parks & Recreation ¹	1.50	1.60		1.90	1.50
Community & Economic
Development:
Planning Services	1.60	1.60		1.60	1.60
Code Enforcement	0.30	0.30		0.30	0.30
	1.90		1.90	1.90	1.90
Totals	25.20	25.20		25.20	25.20

Source: City of Clayton Finance Department, Adopted Budgets.

Full-time equivalent figure for maintenance personnel allocated to

bl k d k &

165

City of Clayton

Statistical Section

Full-Time Equivalent City Employees by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017 2018 2019 2020 2021 2022

2.00	2.00		2.00		2.00		2.00		2.00
2.30	2.30		2.30		2.30		2.30		3.30
1.00	1.00		1.00		1.00		1.00		1.00
5.30		5.30		5.30		5.30		5.30		6.30
11.00	11.00		11.00		11.00		11.00		11.00
2.00	2.00		2.00		2.00		2.00		2.00
13.00		13.00		13.00		13.00		13.00		13.00
4.80	4.50		4.50		4.50		4.50		4.50
1.20	1.50		1.50		1.50		1.50		1.50

1.60	1.60		1.60		1.60		1.60		1.80
0.30	0.30		0.30		0.30		0.30		0.30
1.90		1.90		1.90		1.90		1.90		2.10
26.20	26.20		26.20		26.20		26.20		27.40

166

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

		Fiscal Year Ending
Function:	2013	2014	2015	2016
Function:
Police:
Police calls for service	5,962	5,858	7,303	6,730
Parking violations	125	40	53	53
Traffic citations	585	664	653	518
Physical arrests	201	137	200	219
Public Works:
Storm drains inspected	*	*	*	500
Trees trimmed	*	*	*	70
Park maintenance (acres)	*	*	*	19.07
Street signs maintained	*	*	*	350
Traffic signals maintained	*	*	*	13
Streetlights maintained	*	*	*	1,200
Parks and Recreation Services:
Endeavor Hall rentals (days)	*	*	*	135
Hoyer Hall rentals	*	*	*	33
Ballfields (hours rented)	*	*	*	1,512
Community and Economic
Development:
Planning permits issued	*	*	*	161
Code enforcement cases closed	*	*	*	61
Building permits issued	201	376	430	386
General Government:
Business licenses issued	*	547	707	645
Home occupation applications	*	*		20
Number of recruitments	*	*	*	5

Source: Clayton Finance Department, Contra Costa County Building Department, Clayton Planning Department, Clayton Police Department, Clayton Maintenance Department.

Fiscal year ending June 30, 2016 was the first year of ACFR implementation for the City, this historical data not readily available.

167

City of Clayton

Statistical Section

Operating Indicators by Function

Last Ten Fiscal Years

		Fiscal Year Ending
2017		2018		2019	2020		2021		2022
6,650	7,497		7,545		8,419	6,164		5,804
151	132		146		572	390		435
494	506		386		289	272		327
150	169		169		94	67		180
500	500		56		500	500		500
70	70		316		412	385		1350
19.07	19.07		19.07		19.07	19.07		19.07
350	350		17		212	160		210
13	13		7		13	13		13
1,200	1,200		89		1,196	1,200		111
144	138		139		86	2		37
53	39		92		33	0		24
1,170	1,047		1,225		386	922		1137
107	182		187		36	87		51
93	43		79		47	101
403	475		424		232	401
777	840		741		768	646		708
16	28		22		14	18		26
3	6		3		5	6		13

168

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

Function:	2013	2014	2015	2016

Public Safety:
Automated license plate readers	0	0	0	0
Police stations	1	1	1	1
Patrol units	*	*	8	10
Situational awareness traffic cameras	0	0	0	0
Trailers/Trucks	*	*	2	2
Public Works:
City owned parking lots	6	6	6	6
Community facilities	*	*	3	3
Curb lane miles	*	*	*	82
Manholes	*	*	*	162
Miles of storm drains	*	*	*	32.479
Number of catch basins	*	*	*	968
Number of street islands/medians	*	*	*	50
Miles of "v" ditches	*	*	*	15
Parking meters	0	0	0	0
Street signs	*	*	*	2,000
Streetlights (City owned)	*	*	*	500
Tractors/Trailers	*	*	11	12
Traffic signals (intersections)	*	*	13	13
Work trucks	*	*	8	8
Parks and Recreation Services:
Acres of city parks	19.07	19.07	19.07	19.07
Acres of landscaped area (excl. parks)	46	46	46	46
Acres of open space	515.51	515.51	515.51	515.51
Acres of parks and irrigation	50	50	50	50
Miles of creekside trails	7	7	7	7
Miles of open space trails	20	20	20	20
Number of city parks	7	7	7	7
Number of city trees	3,000	3,000	3,000	3,000
Number of pedestrian bridges	9	9	9	9
Number of children playgrounds	4	4	4	4
Number of playfields	4	4	4	4

169

City of Clayton

Statistical Section

Capital Asset Statistics by Function

Last Ten Fiscal Years

Fiscal Year Ending June 30

2017		2018		2019		2020		2021		2022
0	6		6		6		6		6
1	1		1		1		1		1
11	10		10		10		10		10
0	4		4		4		4		4
2	2		2		2		2		2
6	6		6		6		6		6
3	3		3		3		3		3
82	82		82		82		82		82
162	162		162		162		162		162
32.479	32.479		32.479		32.479		32.479		32.479
968	968		968		968		968		968
50	50		50		50		50		50
15	15		15		15		15		15
0	0		0		0		0		0
2,000	2,000		2,015		2015		2015		2015
500	500		500		500		500		500
13	13		14		14		14		14
13	13		13		13		13		13
8	8		7		8		8		8
19.07	19.07		19.07		19.07		19.07		19.07
46	46		46		46		46		46
515.51	515.51		515.51		515.51		515.51		515.51
50	50		50		50		50		50
7	7		7		7		7		7
20	20		20		20		20		20
7	7		7		7		7		7
3,000	3,000		3,000		3000		3000		3000
9	9		9		9		9		9
4	4		4		4		4		4
4	4		4		4		4		4

170

General Information:
Date of Incorporation	March 18, 1964
Form of Government	Council-Manager
Number of authorized City employees	27
Population:
Population	11,070
Median age	46.3
Median household income	$153,607
Registered voters	8,477
Area in square miles	4.3
Miles of Streets:
Lane miles	44.9
Pavement condition index	79/100 ["Very Good" rating]
Fire Protection (CalFire Services Clayton)
Number of stations	1
Police Protection
Number of stations	1
Number of patrol vehicles	10
Number of sworn personnel	11
Education
Elementary Schools:	1
Mt Diablo Elementary
Middle Schools:	1
Diablo View Middle School
Library (Contracted with Contra Costa County)
Number of libraries	1
Parks & Community Facilities
Park sites	7
Park acreage	19.07
Open space acreage	515.51
Open space trail miles	20
Creekside trail miles	7
Endeavor Hall	1
Hoyer Hall (in the library)	1
City Hall Conference Room	1

Source: City of Clayton Finance Department, Contra Costa County Library, City of Clayton City Clerk, HdL "Demographic and Economics Statistics" Report for calendar year 2018, US Census, DataUSA.

171

City of Clayton, California Annual Financial Report For the Year Ended June 30, 2022

INTRODUCTORY SECTION

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

			Page
INTRODUCTORY SECTION
			1
Table of Contents……………………………………………………………………………….
Letter of Transmittal……………………………………………………………………………			4
Mission Statement……………………………………………………………………………...			9
Organizational Chart…………………………………………………………………………...			10
Principal Officers, Department Heads and Advisory Bodies			11
Regional Map of Clayton and Nearby Cities			12
FINANCIAL SECTION
Independent Auditors’ Report……………………………. . …………………………………			17
Management's Discussion and Analysis………………………. . . …………………………. .			21
Basic Financial Statements
Government-Wide Financial Statements:
Statement of Net Position………………………………………………. . ……………			33
Statement of Activities and Changes in Net Position………………………. . …….			34
Governmental Fund Financial Statements:
Balance Sheet……………………………………………………………. . …………….			39
Reconciliation of Governmental Funds Balance Sheet to the Statement of
Net Position…………………………………………………………………………			42
Statement of Revenues, Expenditures and Changes in Fund Balances…………. .			43
Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and
Changes in Fund Balances to the Statement of Activities and Changes in Net
Position…. . . ……………………………………. . …………. . .			45
Proprietary Fund Financial Statements:
Statement of Net Position………………………………………. . ……………………			47
Statement of Revenues, Expenses and Changes in Net Position…………. . . ……. .			48
Statement of Cash Flows……………………………………………………. . ……….			49
Fiduciary Fund Financial Statements:
Statement of Fiduciary Net Position…………………………………. . ……………. .			51
Statement of Changes in Fiduciary Net Position……………………. . …………….			52
Notes to Basic Financial Statements…………………………………. . ……………………. .			55

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

FINANCIAL SECTION (Continued)
Required Supplementary Information
Budgetary Comparison Schedules
General Fund……………………………………………………. . . ……………………		103
Landscape Maintenance District ……………. …………. . . ………………………….		104
Successor Housing Agency………. . ……………. . . …………………………………. .		105
American Rescue Plan Act………. . ……………. . . …………………………………. .		106
Pension Plan Funding Status
Schedule of Proportionate Share of Net Pension Liability…. . …………………….		107
Schedule of Pension Plan Contributions…. . …. . . ……………………………………		108
Other Postemployment Benefits Plan Funding Status
Schedule of Changes in the Net OPEB Liability and Related Ratios. …………….		109
Schedule of OPEB Plan Contributions……. . …. . . ……………………………………		110
Notes to the Required Supplementary Information………………………………………….		111
Supplementary Information
Major Funds
Budgetary Comparison Schedules. . . . . …………………………………………. . ……		114
Non-Major Governmental Funds Financial Statements:
Combining Balance Sheet………………………………………………………. . ……		117
Combining Statement of Revenues, Expenditures and Changes in Fund
Balances………………………………………………………. . . ……………………		119
Budgetary Comparison Schedules……………………………………. . …………….		121
Internal Service Funds:
Combining Statement of Net Position. . . ………………………………. . ……………		133
Combining Statement of Revenues, Expenses and Changes in Net
Position…………………………………………………………. . . ………………….		134
Combining Statement of Cash Flows………………………………. . ………………		135
Agency Funds:
Combining Statement of Changes in Assets and Liabilities………………. . ……. .		137

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Table of Contents

STATISTICAL SECTION (UNAUDITED)
Statistical Section Table of Contents…………………………………………………..		142
Financial Trends
Net Position by Component ……………………………………………………………		143
Changes in Net Position ……………………………………………………………….		145
Fund Balances of Governmental Funds ……………………………………………….		147
Changes in Fund Balances of Governmental Funds …………………………………..		149
Revenue Capacity
Property Tax Levies and Collections ……………………………………………..........		151
Assessed Value and Estimated Actual Value of Taxable Property ……………………		152
Taxable Assessed Value by Source ………………………………………………		153
Property Tax Rates …………………………………………………………………….		155
Principal Property Tax Payers ………………………………………………………..		157
Debt Capacity
Ratios of Debt Outstanding ……………………………………………………….......		159
Computation of Direct and Overlapping Debt ……….……………………………….		160
Legal Debt Margin ………………………………………………………………….....		161
Bonded Debt Pledged Revenue Coverage ………………………………………………..		163
Demographic and Economic Information
Demographic and Economic Statistics …………………………………………………		164
Operating Information
Full-time Equivalent City Employees by Function …………………………………….		165
Operating Indicators by Function ………………………………………………………		167
Capital Asset Statistics by Function ……………………………………………………		169
General Information …………………………………………………………………….		171
ADDITIONAL REPORTS
Independent Auditors’ Report on Internal Controls over Financial Reporting
and on Compliance and other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards …………………….		173

			CITY COUNCIL
COMMUNITY			CARL “CW” WOLFE, MAYOR
COMMUNITY			PETER CLOVEN, VICE MAYOR
DEVELOPMENT	(925) 673‐7340	6000 HERITAGE TRAIL CLAYTON, CALIFORNIA 94517‐1250	JEFF WAN, COUNCILMEMBER
ENGINEERING	(925) 969‐8181	TELEPHONE (925) 673‐7300 FAX (925) 672‐4717	JIM DIAZ, COUNCILMEMBER
			HOLLY TILLMAN , COUNCILMEMBER

January 23, 2023

Honorable Mayor and Members of the City Council

City of Clayton

We are pleased to submit the City of Clayton’s Annual Comprehensive Financial Report (ACFR) for the Fiscal year ended June 30, 2022. Since its incorporation, the City has submitted an annual audited Financial Report to the City Council and its citizens in accordance with California Government Code section 25253. The ACFR provides the public, businesses, property owners, investors and all interested parties with an overview of the City’s finances. It is important to note the acronym for this report has changed from CAFR to ACFR as the prior acronym can be considered an offensive racial slur and is no longer used. The information in this ACFR is prepared in accordance with Generally Accepted Accounting Principles (GAAP) and includes an “unmodified opinion” (the highest rating) on the report by an independent certified public accounting firm, Cropper Rowe, LLP.

Although we rely on the standards and expertise of these independent auditors, the responsibility for the accuracy and fair representation of the ACFR ultimately rests with City management. We believe the data presented in this Report is accurate in all material respects and all statements and disclosures have been included necessary for the reader to obtain a thorough understanding of the City’s financial activities. Management of the City has established an internal control framework that is designed both to protect the City’s assets from loss, theft, or misuse and to compile reliable and timely information for the preparation of the City’s financial statements in conformity with GAAP. Because the cost of internal controls should not outweigh its benefits, the City’s framework of internal controls has been designed to provide reasonable rather than absolute assurance that its financial statements will be free from material misstatements.

For readers interested in a more detailed review of the City’s financial statements, a section in the ACFR called “Management Discussion and Analysis” (MD&A) has been included in accordance with Government Accounting Standards Board (GASB) Statement 34, Basic Financial Statements – And Management’s Discussion and Analysis – For State and Local Governments . The MD&A recounts the financial highlights of the City and provides additional analyses on the variances and trends reported as part of the financial statements. The MD&A further discloses significant items impacting the financial condition of the City and is designed to be read in conjunction with this Letter of Transmittal.

City Profile

The City of Clayton was incorporated in 1964 and is located in Contra Costa County, a suburban region in the eastern portion of the San Francisco-Bay Area. Pursuant to its adopted budget for the fiscal year ending June 30, 2022, the City has a permanent staff of 27.4 full- time equivalent employees which serves approximately 11,585 residents in a land area of approximately 4 square miles. Nestled in a small valley at the northern base of Mt. Diablo, the boundaries of the City are mostly developed with a

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

City Profile , continued

strong community emphasis on open space preservation and maintenance of an extensive network of trails. The City continues to show strength as a safe community with attractive residential neighborhoods as a gateway to the fast paced and robust Bay Area economy.

The City operates under a Council- Manager form of government and provides many essential public services to the community. The City is governed by a five-member City Council elected at large, serving staggered terms of four years. The Mayor and Vice Mayor are selected by the City Council each year from its membership and serve one-year terms. The City Council is responsible for setting policies, adopting City ordinances, resolutions, the annual budget, appointing commissions and committees, and hiring the City Manager and City Attorney, among other key duties. The City Manager is responsible for implementing the City Council’s policies, ordinances and directives, overseeing the daily operations of the City, and appointing all department heads and through them all other employees of the City.

As presented in the City’s government-wide statement of activities, pursuant to GASBS 34, the City’s numerous departments and restricted- use funds accounting for public services are consolidated into higher-level programs , which include: public safety, public works, parks and recreation services, community and economic development, and general government. The public safety program is composed of an in-house police department, staffed with eleven (11) full-time sworn police officers and two (2) administrative personnel dedicated to the function of police services. Public works tracks the maintenance of public landscaping (i.e. street medians and shoulders, sub-division entryways, etc.), facilities, transportation infrastructure (i.e. streets, lighting, traffic signals, etc.), as well as contract City engineering services for management of the City’s Capital Improvement Program as well as land development regulatory needs. In their capacity of providing parks and recreation services, the City’s in-house maintenance department oversees the maintenance of the Clayton Community Library, the Clayton Community Park, The Grove Park, various neighborhood parks, and the historic Endeavor Hall rental facility. The community and economic development program consists of two (2) in-house staff providing planning and land-use regulatory services as well as the functions of economic development and affordable housing. Finally, the general government program reports legislative and support costs indispensable in providing in-house public services and maintains compliance an ever-expanding list of legal, fiscal and other statutory requirements imposed by the State of California.

The City’s fiscal year runs from July 1st through June 30th . Each year, the City Manager presents an annual budget to the City Council for adoption by Resolution on or before June 30th in accordance with Clayton Municipal Code section 3.02.040. On an interim basis the budget is monitored continually with the budgetary level of control maintained at the fund level.

Economic Condition and Outlook

Essentially a cul-de-sac hugging the base of acclaimed Mt. Diablo, Clayton maintains a small-town atmosphere while its relative proximity to California State Highway 24 and neighboring city BART stations make it ideal for commuters. In addition, the semi-rural setting, low crime rate and excellent middle and elementary public schools make Clayton attractive to families of all types.

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Economic Condition and Outlook, continued

Its residents are generally highly educated with approximately 57.8% of adults greater than age 25 having a bachelor’s degree or higher. In June of 2022, the unemployment rate of the City was 3.0%, compared to 3.20% and 4.0% for Contra Costa County and the State of California, respectively. In 2020 the median household income in the City was $153,607 compared to $87,355 for the state. The median age of Clayton residents is 43.1 as of the 2021 calendar year. The median sales price of homes in Clayton at June 30, 2022 was $ 1,050,000, a 8.7% year over year decrease. Despite this decline, property tax and sales & use tax revenues remain relatively strong.

In order, the City General Fund’s top revenue sources are: in-lieu vehicle license fees (VLF – paid from the state’s portion of property taxes); secured property taxes; franchise fees; and sales & use taxes (including the state- allocated “triple flip” prior to the fiscal year ending June 30, 2017). The following chart illustrates the ten-year trend of these four major revenue sources for the City taken from the 2022-23 Adopted Budget:

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Altogether, these four primary revenue sources (Property Tax In-Lieu 22.1%, Property Taxes 20.6%, Franchise Fees 10.7%, Sales and Use Taxes 10.5%) comprise 63.9% of General Fund revenues per the adopted budget for the fiscal year ending June 30, 2023. A non-recurring spike was realized in sales and use taxes six years ago in the year ended June 30, 2017 attributable to the City receiving a final true-up Triple Flip allocation from the state following the statutory dissolution of this process effective January 1, 2017. Accordingly, the following year realized a dip back to “normal” sales & use tax trend levels. In the long-run however, given the suburban composition of the City and its geographic boundaries limiting future development, management anticipates slow growth for the next ten years in sales & use taxes and franchise fees and moderate growth in property tax revenue (including in-lieu VLF property taxes received from the state) . With increasing telecommunications technologies, cable-based franchise fees could be a declining or at-risk revenue, while other factors such as weather patterns and sustainable energy trends could impact similar franchise fee revenue. Given the recent U.S. Supreme Court South Dakota v. Wayfair ruling, it is reasonably possible the City will see an increase in sales & use tax revenue in forthcoming years with the definition of eligible taxable sales transactions now potentially including all online sales where “substantial nexus” requirements exist with online sellers in California.

Long‐Term Financial Planning

As of the year ended June 30, 2022, the City of Clayton’s financial condition remains sound. An indicator of financial condition is the level of fund balances, both reserved and unreserved, in the City’s General Fund. The City Council has directed an absolute minimum reserve of $250,000 as its never-to-be-expended “catastrophic reserve.” In practice, due to the effectiveness in fiscal management, this policy has been easily achieved, indicating perhaps this floor requirement should be elevated in the future. However, the standing Policy Goal of the City Council is to establish and retain an undesignated reserve of 50% the annual General Fund operating budget. At June 30, 2022, the total unassigned General Fund reserve balance is $6,068,266 or .97 times the size of the adopted General Fund operating budget for the fiscal year ending June 30, 2022. This means in an emergency scenario, the City could operate over an entire year on reserves alone.

The City of Clayton maintains a five-year Capital Improvement Program (CIP), which serves as its planning document to ensure its infrastructure is well maintained. The City prioritizes roads for maintenance and reconstruction based on the relative pavement condition index, with other infrastructure and facility improvement projects prioritized at the discretion of the City Council. Over the course of the last 10 years the City has invested approximately $1.0 million into facility and infrastructure capital improvements, funded by Highway User Tax Apportionments (i.e. HUTA or “gas taxes”), local Measure J taxes, redevelopment property tax increment allocations (prior to the dissolution of the Clayton Redevelopment Agency in 2012), and other state and federal grants. For the upcoming fiscal year ending June 30, 2023, the City’s CIP is expected to invest an additional $1,362,697 into transportation and general infrastructure maintenance and improvement needs of the community.

City of Clayton

Comprehensive Annual Financial Report

For the year ended June 30, 2022

Letter of Transmittal

Acknowledgements

The preparation of an ACFR cannot be accomplished without the professional, efficient and dedicated services of the Admin/Finance/Legal Department staff (in particular, Accounting Technician Jennifer Giantvalley), and the independent accounting firm of Cropper Rowe, LLP. We also thank the honorable members of the City Council and the various departments for their cooperation and support in planning and conducting the financial operations of the City during the fiscal year.

Respectfully Submitted,

Reina J. Schwartz Nitish Sharma

City Manager Finance Director (Interim)

OUR MISSION

To be of exemplary service to the Clayton community with an emphasis on:

Health and safety
Responsive customer service
Highly trained team of employees
A cooperative work environment

OUR VALUES

 Courtesy  Inclusiveness

 Creativity  Informed risk taking

 Diversity  Open communication

 Employee participation  Professionalism

 Ethical behavior  Trustworthiness

 Fiscal responsibility

OUR VISION

The City of Clayton organization will be recognized as a premier small city. Customer service will be our hallmark; organizational processes will be a model of efficiency and effectiveness; innovation will be common place; and excellence of work product will be the norm. The employees will enjoy their work environment, and each will be a valued and respected member in his or her field of work. All residents and the City Council will be proud of their City government.

Finance Director

DIRECTORY OF PRINCIPAL OFFICIALS AND ADVISORY BODIES

As of report issuance

CITY COUNCIL

Jeff Wan, Mayor

Jim Diaz, Vice Mayor

Peter Cloven, Councilmember

Holly Tillman, Councilmember

Kim Trupiano, Councilmember

COMMISSIONS

Planning Commission

COMMITTEES

Trails and Landscaping Committee

APPOINTED OFFICIALS AND DEPARTMENT HEADS

Reina Schwartz		City Manager
Hank Stratford		City Treasurer
Nitish Sharma		Finance Director (Interim)
Richard McEachin		Chief of Police
Janet Calderon		City Clerk / HR Manager
Dana Ayers		Community Development Director
Jim Warburton		Maintenance Supervisor
Malathy Subramanian		City Attorney (contract)
Larry Theis		City Engineer (contract)
	FINANCE TEAM

Jennifer Giantvalley		Accounting Technician
Richard Sanders		Accountant (consultant)

Regional Map of Clayton, California

And Nearby Cities

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FINANCIAL SECTION

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INDEPENDENT AUDITORS’

REPORT

INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

We have audited the accompanying financial statements of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, Clayton, as of and for the year ended June 30, 2022, and the related notes to the financial statements, which collectively comprise the City of Clayton’s basic financial statements as listed in the table of contents.

In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City of Clayton, as of June 30, 2022, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.

Basis for Opinions

We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards , issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Clayton and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.

Responsibilities of Management for the Financial Statements

Management is responsible for the preparation and fair presentation of the financial statements in accordance with accounting principles generally accepted in the United States of America, and for the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.

In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter.

Auditor’s Responsibilities for the Audit of the Financial Statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting

from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements.

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City of Clayton’s internal control. Accordingly, no such opinion is expressed.

Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.

Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Clayton’s ability to continue as a going concern for a reasonable period of time.

We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit.

Required Supplementary Information

Accounting principles generally accepted in the United States of America require that the management’s discussion and analysis, pension plan funding status, other postemployment benefits plan funding status, and budgetary comparison information on pages 21-31 and 103-111 be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.

Supplementary Information

Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Clayton’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and

MANAGEMENT’S DISCUSSION AND ANALYSIS

Management of the City of Clayton (the "City") provides this Management’s Discussion and Analysis of the City's Basic Financial Statements for readers of the City's financial statements. This narrative overview and analysis of the financial activities of the City is for its fiscal year ended June 30, 2022. We encourage readers to consider this information in conjunction with the additional information that is furnished with the City's financial statements, which follow.

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Net Position - The assets of the City of Clayton exceeded its liabilities at the close of the year ended June 30, 2022, by $45,759,874. Of this amount, $5,744,418 was reported as "unrestricted net position" and may be used to meet the ongoing obligations to citizens and creditors.

Changes in Net Position - The City's total net position increased by $337,870 in the fiscal year ending June 30, 2022. Net position of governmental activities increased by $381,717, while net position of business-type activities decreased by $43,847.

Major Fund Highlights

Governmental Funds – As of the year ended June 30, 2022, the City's governmental funds reported a combined ending fund balance of $17,172,907. Of this amount $5,744,867 represents "unassigned fund balances" available for appropriation.

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

This discussion and analysis is intended to serve as an introduction to the City of Clayton's basic financial statements. The City of Clayton's basic financial statements comprise three components: 1) government-wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains required supplementary information and supplemental information in addition to the basic financial statements themselves.

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

The statement of net position presents information on all of the City of Clayton's assets and liabilities, with the difference between the two reported as net position . Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City of Clayton is improving or deteriorating.

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

The statement of activities presents information showing how the City's net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows . Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e. g. uncollected taxes and earned but unused vacation leave).

Both of the government-wide financial statements distinguish functions of the City of Clayton that are principally supported by taxes and intergovernmental revenues ( governmental activities ) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges ( business-type activities ). The governmental activities of the City of Clayton include general government, public safety, public works, community and economic development, and parks and recreation services. The business-type activities of the City of Clayton include the activities of the Endeavor Hall enterprise fund.

Fund Financial Statements

A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City of Clayton, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements. All of the funds of the City of Clayton can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.

Governmental Funds

Governmental funds are used to account for essentially the same functions reported as governmental activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near-term inflows and outflows of spendable resources , as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.

Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government- wide financial statements. By doing so, readers may better understand the long- term impact of the government's near-term financing decisions. Both the governmental fund balance sheet and the governmental fund statement of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities .

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

The City of Clayton maintains fifteen individual governmental funds. Information is presented separately in the government funds balance sheet and governmental funds statement of revenues, expenditures, and changes in fund balances for the General Fund, Landscape Maintenance District, Housing Successor Agency, and Capital Improvement Program, all of which are reported as major funds.

Proprietary Funds

The City of Clayton maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City of Clayton uses an enterprise fund to account for its Endeavor Hall activities. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Clayton various functions. City of Clayton uses three internal service funds to account for its capital equipment replacement program, self-insurance activities, and extraordinary employer pension contribution fluctuations. Because these services predominantly benefit governmental rather that business-type functions, they have been included within governmental activities in the government-wide financial statements.

Proprietary funds provide the same type of information as the government-wide financial statements, only in more detail. The City’s sole enterprise fund is considered to be a major fund. The internal service funds are combined into a single, aggregated presentation in the proprietary fund financial statements.

Fiduciary Funds

The City is the fiscal agent for benefit assessment districts and other parties holding amounts collected which await payment as directed. The City’s fiduciary activities are reported in the separate statement of fiduciary net position and the agency funds statement of assets and liabilities. These activities are excluded from the City’s other financial statements because the City is acting as a trustee for these funds and cannot use these assets to finance its own operations. The City’s fiduciary funds include a private-purpose trust fund to account for the activities of the City of Clayton Redevelopment Successor Agency.

Notes to the Financial Statements

The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements can be found on pages 55-101 of this report.

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City’s progress in funding its obligation to provide pension and other post -employment benefits to its employees as well as budgetary information for the General Fund and each of the major governmental funds.

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

As noted previously, net position may serve over time as a useful indicator of a government's financial position. The City’s total net position was $45,759,874 at June 30, 2022, which is an increase of $392,782 from the prior year’s restated net position at June 30, 2021.

The largest portion of the City’s net position reflects its investment in capital assets (e. g. land, buildings, etc. ) net of any related debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens and these assets are not available for future spending. Although the City’s investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. The following is condensed comparative Statements of Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

					Business-			Business-
	Governmental		Governmental			Type		Type
		Activities		Activities	Activities			Activities		Total		Total
Assets		2022		2021		2022		2021		2022		2021
Assets
Current Assets	$	14,773,722	$	14,812,813	$	(120,893)	$	(112,174)	$	14,652,829	$	14,700,639
Noncurrent Assets		6,482,003		6,462,021		-		-		6,482,003		6,462,021
Capital Assets		29,116,205		28,793,685		1,009,203		1,038,076		30,125,408		29,831,761
Total Assets
Total Assets		50,371,930		50,068,519		888,310		925,902		51,260,240		50,994,421

Deferred outflows		1,285,641		1,051,589		-		-		1,285,641		1,051,589
Liabilities
Current Liabilities		640,113		362,937		8,171		1,916		648,284		364,853
Noncurrent Liabilities		3,666,339		5,944,104		-		-		3,666,339		5,944,104
Total Liabilities
Total Liabilities		4,306,452		6,307,041		8,171		1,916		4,314,623		6,308,957

Deferred inflows		2,471,384		369,961		-		-		2,471,384		369,961
Net Position
Net investment in
capital assets		29,116,205		28,793,685		1,009,203		1,038,076		30,125,408		29,831,761
Restricted		9,890,048		13,156,670		-		-		9,890,048		13,156,670
Unrestricted		5,873,482		2,492,751		(129,064)		(114,090)		5,744,418		2,378,661
Total net position
Total net position	$	44,879,735	$	44,443,106	$	880,139	$	923,986	$	45,759,874	$	45,367,092

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

Of the City’s total net position, $9,890,048 (21.6%) represents resources that are subject to external restrictions on how they may be used. The balance of the unrestricted net position of $5,744,418 (12.6%) may be used to meet the City's ongoing obligations to citizens and creditors. City revenues for the year, including both governmental and business-type activities, were $9,359,704, while expenses totaled $9,021,834, resulting in a net increase in net position of $337,870 excluding transfers, extraordinary and special items. This net increase was primarily attributable to a increase in net position of governmental activities, which is discussed in greater detail in the following section.

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

							Business-		Business-
	Governmental		Governmental				Type		Type
		Activities			Activities		Activities		Activities		Total		Total
Revenues:		2022			2021		2022		2021		2022		2021
Revenues:
Program revenues:
Charges for Services	$	1,002,338	$		961,910	$	16,847	$	(1,442)	$	1,019,185	$	960,468
Operating grants and contributions		2,755,382			893,718		-		-		2,755,382		893,718
Capital grants and contributions		120,774			42,363		-		-		120,774		42,363
Total program revenues
Total program revenues		3,878,494			1,897,991		16,847		(1,442)		3,895,341		1,896,549
General revenues:
Property taxes		2,846,766			2,722,906		-		-		2,846,766		2,722,906
Special parcel taxes		1,348,657			1,309,373		-		-		1,348,657		1,309,373
Sales and use taxes		563,908			510,029		-		-		563,908		510,029
Business license taxes		162,881			90,872		-		-		162,881		90,872
Franchise fees		587,740			567,350		-		-		587,740		567,350
Payments in lieu of taxes		174,443			171,029		-		-		174,443		171,029
Investment income		(281,502)			508,256				(379)		(281,502)		507,877
Miscellaneous		54,512			38,972		-		-		54,512		38,972
Gain (loss) on sale of assets		6,958			1,741		-		-		6,958		1,741
Total general revenues
Total general revenues		5,464,363			5,920,528				(379)		5,464,363		5,920,149
Total revenues
Total revenues		9,342,857			7,818,519		16,847		(1,821)		9,359,704		7,816,698
Expenses:
General government		2,629,048			1,796,454		-		-		2,629,048		1,796,454
Public works		2,509,096			2,909,710		-		-		2,509,096		2,909,710
Public safety		2,736,817			2,980,000		-		-		2,736,817		2,980,000
Community and economic
development		356,450			357,133		-		-		356,450		357,133
Parks and recreation services		729,729			592,433		-		-		729,729		592,433
Endeavor Hall		-			-		60,694		73,117		60,694		73,117
Total expenses
Total expenses		8,961,140			8,635,730		60,694		73,117		9,021,834		8,708,847

Change in Net Position		381,717			(817,211)		(43,847)		(74,938)		337,870		(892,149)
Net Position – Beginning, restated
Net Position – Beginning, restated		44,498,018			45,260,317		923,986		998,924		45,422,004		46,259,241
Net Position – ending
Net Position – ending	$	44,879,735		$	44,443,106	$	880,139	$	923,986	$	45,759,874	$	45,367,092

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

The increase in net position of the governmental activities over the prior year was primarily attributable to a increase in both operating and capital grants and contributions. Total expenses were $8,961,140 in the current year compared to $8,635,730 in the prior year. The following chart depicts the relative size of expenses by function for the fiscal years ending June 30, 2022 and 2021:

Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

Total program revenues from governmental activities were $ 3,878,494 in the current year compared to $1,897,991 in the prior year. Program revenues are derived directly from the program itself or from parties outside the reporting government's taxpayers or citizenry. They reduce the net cost of the function to be financed from government's general revenues. Of the governmental program revenues, 25.8% were derived from charges for services, which includes park use fees, rental fees, licenses and permits, planning services fees, engineering plan check fees, police service fees, and other revenues. The remaining 74.2% of the governmental program revenues came from operating and capital grants and contributions. General revenues are all other revenues not categorized as program revenues such as property taxes, special parcel taxes, sales and use taxes, motor vehicle fees, investment earnings, franchise fees, use of money and property, service charges, and miscellaneous revenues.

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

Total general revenues from governmental activities decreased by $456,165 (7.7%) over the prior year. The following pie charts depict the relative size of governmental activities program and general revenues by source for the fiscal years ending June 30, 2022 and 2021:

Governmental Activities
Revenues by Source
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
$(1,000,000)
Fiscal Year 2021	Fiscal Year 2022

Analysis of Business-Type Activities

Total business-type expenses decreased 20.4% from $73,117 in the prior year to $60,694 in the current year. This decrease is largely attributable to the decrease in general and administrative costs of the Endeavor Hall rental facility. Total services revenue increased significantly from $-1,442 in the prior year to $16,847 in the current year due to the increase in rental activity. Net position of business -type activities declined $43,847 to a total of $ 880,139 at June 30, 2022 due to charges for services being insufficient to cover the annual depreciation expense and general operating expenses of underlying Endeavor Hall rental facility assets.

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

The focus of the City of Clayton's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Clayton's financing requirements. In particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.

As of the end of the current fiscal year, the City’s governmental funds reported combined ending fund balances of $17,172,907. Of this amount, $5,744,867 (33.5%) is unassigned; $173,471(1.0%) is in non-spendable form; $3,330,153 (19.4%) is assigned for specific purposes; $6,719,595 (39.1%) is restricted by law, regulation, or other outside contractual agreements; and $1,204,821 (7.0%) is committed for specific expenditures in the future.

General Fund

The City’s General Fund reported an increase in fund balance of $249,464 (4.0%) in the current fiscal year. This modest increase is mostly attributable to increase in property taxes, special parcel taxes and assessments, and a corresponding decrease in investment earnings (primarily due to market rate adjustments). Total fund balance of the General Fund is $6,413,357 as of June 30, 2022, of which $5,744,867 (89.6%) is reported as unassigned and available for appropriation. This unassigned fund balance is .92 times the size of the General Fund’s adopted operating budget for the upcoming fiscal year ending June 30, 2022.

Below is a summary of the General Fund expenditures by department.

						Pandemic
				Rainy		Recovery
General government	General Fund			Day Fund		Reserve		Total
General government	$	1,447,700	$	26,000	$	1,096,717	$	2,570,417
Public safety		2,684,319		-		-		2,684,319
Public works		333,423		-		-		333,423
Community and
economic development		299,175		-		-		299,175
Parks and recreation
services		336,592		-		-		336,592
Capital outlay		22,168		-		-		22,168
Total expenditures	$	5,123,377	$	26,000	$	1,096,717	$	6,246,094

Landscape Maintenance District

Community Facilities District No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, reported a decrease in fund balance of $447,353 (41.2%) in the current fiscal year. This decrease in fund balance is largely attributable to increases in operating costs such as water service and weed abatement, as well as a increase in project costs/capital outlay costs. Total fund balance of the Landscape Maintenance District is $ 638,533 as of June 30, 2022, of which $ 32,509 is reported as assigned or restricted for the following year’s operating budget, and the remaining fund balance is assigned.

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

The Successor Housing Agency special revenue fund reported a increase in fund balance of $187,452 (3.4%) in the current fiscal year. This increase in fund balance resulted primarily from unspent program revenue on housing loan repayments as well as unrealized gains on the inventory of affordable income housing. Total fund balance of the Successor Housing Agency is $5,617,695 as of June 30, 2022, which is classified entirely as restricted.

Capital Improvement Program

The Capital Improvement Program capital projects fund reported an increase in fund balance of $681,698 (35.4%) in the current fiscal year. This increase in fund balance primarily arose from timing differences between project execution and funding. Total fund balance of the Capital Improvement Program fund is $2,606,444 and is reported entirely as assigned for capital projects as of June 30, 2022.

Analysis of Proprietary Funds

The City of Clayton's proprietary funds provide the same type of information found in the government-wide financial statements, but in more detail. The net position of the City’s only major enterprise fund, Endeavor Hall, at the end of the year was $880,139, and total net position for the internal service funds amounted to $1,000,736.

GENERAL FUND BUDGETARY HIGHLIGHTS

General Fund actual revenues and transfers fall short of total revenues and transfers of the final and adopted budget by $39,744. The variance is due to a combination of factors including an increase in taxes and assessment and a decrease in the investment reported at year-end based on the market rate. The unrealized investment loss was reported as a direct result of the City’s investment portfolio being largely made up of fixed instrument securities during a time of declining interest rates. As noted in recent quarterly investment portfolio reports presented to the City Council, the City’s investment policy is designed to reduce volatility and generate consistent returns in the long run-in order to protect public funds. Actual property tax revenues exceeded somewhat conservative adopted budgetary growth projections by $186,163 (6.9%), which was largely offset by lower-than-expected revenue from permits, licenses and fees and sales tax receipts.

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

Actual General Fund expenditures of $6,246,094 were more than the final adjusted budget by $1,447,307 for the year ended June 30, 2022. The negative variance is a result of actual expenditures being more than budgeted in General government due to investments in the capital expenditures for the fiscal year ended June 30, 2022.

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

The City’s investment in capital assets for its governmental and business-type activities as of June 30, 2022 amounted to $30,125,408 (net of accumulated depreciation). This investment in capital assets includes land, building, improvements, machinery and equipment, park facilities, corporate yard building, and roads. Total depreciation expense on governmental assets totaled $1,048,171, versus $1,080,713 in the prior year. The slight decrease in depreciation is attributable to the completion of significant capital projects during the prior and current fiscal years and capital assets reaching their estimated useful lives. Additional information on the City of Clayton's capital assets can be found in Note 6 of this report.

Debt Administration

The remaining debt of the former Clayton Redevelopment Agency (RDA) of $ 5,835,000 was transferred to the Successor Agency on February 1, 2012 (fiscal year ending June 30, 2012) . The City has no outstanding general obligation debt. The Successor Agency has maintained its "AAA" credit rating (S&P) on outstanding Tax Allocation Bonds. Additional information on the Successor Agency's long-term debt can be found in Note 13 of this report.

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

As the City of Clayton is largely a residential community the annual General Fund operating budget relies heavily on property taxes to finance annual operating appropriations rather than other sources of revenue larger and more commercially and industrial developed municipalities have access to (i. e. sales and transient occupancy taxes). The City strives to meet the ever evolving needs of local residents and businesses within the constraints of limited and sometimes restrictive revenue sources.

There was an increase in adopted General Fund operating appropriations when compared to the actuals reported as of June 30, 2022, for the upcoming fiscal year ending June 30, 2023 of $641,365 (10.2%) . The increase in appropriations is attributable primarily to labor wage and benefit costs of various City departments and capital improvement costs included as part of the general government. The annual June 2021 to June 2022 consumer price index inflationary factor is 6.8% as published by the U. S. Bureau of Labor and Statistics for the San Francisco-Oakland-Hayward region. In addition, there are projected decreases in the annual CalPERS unfunded accrued liabilities and normal costs, primarily due to Classic Tier employees retiring and new employees being hired in the PEPRA tier. The adopted budget for the fiscal year ending June 30, 2023 projects total General Fund revenues of $6,887,459 an increase of approximately

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

$34,920 over the prior year actual. The projected revenue growth reflects continued growth in property tax and sales and use taxes supported by actual results reported in the fiscal year ending June 30, 2022.

REQUEST FOR INFORMATION

This financial report is designed to provide a general overview of the City of Clayton's finances for all those with an interest in the City's finances. Questions concerning any of the information provided in this report, or requests for additional financial information, should be addressed to the Office of the Finance Manager, 6000 Heritage Trail, Clayton, California 94517.

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

City of Clayton

Government-Wide

Statement of Net Position

June 30, 2022

	Governmental			Business-Type
ASSETS		Activities			Activites			Total
Current Assets:
Cash and investments	$	13,441,679	$		-	$		13,441,679
Accounts receivable (net of allowances)		1,133,315			-			1,133,315
Interest receivable		25,257			-			25,257
Internal balances		120,893			(120,893)			-
Prepaid expenses		52,578			-			52,578
Total Current Assets		14,773,722			(120,893)			14,652,829
Noncurrent Assets:
Investment in affordable housing		3,170,453			-			3,170,453
Notes receivable		3,311,550			-			3,311,550
Nondepreciable assets		3,133,754			167,738			3,301,492
Depreciable assets, net		25,982,451			841,465			26,823,916
Total Noncurrent Assets		35,598,208			1,009,203			36,607,411
Total Assets		50,371,930			888,310			51,260,240
DEFERRED OUTFLOWS OF RESOURCES
Deferred outflows related to pension		1,285,641			-			1,285,641
Deferred outflows related to OPEB		-			-			-
Total Deferred Outflows of Resources		1,285,641			-			1,285,641
LIABILITIES
Current Liabilites:
Accounts payable		149,907			2,671			152,578
Deposits payable		-			5,500			5,500
Accrued payroll		37			-			37
Unearned revenue		332,166			-			332,166
Compensated absences payable		83,645			-			83,645
Other liabilities		74,358			-			74,358
Total Current Liabilities		640,113			8,171			648,284
Noncurrent Liabilites:
Compensated absences payable		83,645			-			83,645
Net OPEB liability		578,315			-			578,315
Net pension liability		2,759,739			-			2,759,739
Lease payable		244,640			-			244,640
Total Noncurrent Liabilities		3,666,339			-			3,666,339
Total Liabilities		4,306,452			8,171			4,314,623
DEFERRED INFLOWS OF RESOURCES
Deferred inflows related to pension		2,471,384			-			2,471,384
Deferred inflows related to OPEB		-			-			-
Total Deferred Inflows of Resources		2,471,384			-			2,471,384
NET POSITION
Net investment in capital assets		29,116,205			1,009,203			30,125,408
Restricted for special projects and programs		9,890,048			-			9,890,048
Unrestricted		5,873,482			(129,064)			5,744,418
Total Net Position	$	44,879,735		$	880,139		$	45,759,874

The accompanying notes are an integral part of the financial statements

City of Clayton

Government-Wide

Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

							Operating		Capital
						Charges	Grants and		Grants and		Governmental Business-type
Functions/Programs			Expenses		for Services		Contributions		Contributions			Activities		Activities		Total
Primary Government:
Governmental Activities
General government	$		2,629,048	$		437,626	$	13,808	$	-	$	(2,177,614)	$	-	$	(2,177,614)
Public safety			2,736,817			48,292		397,461		-		(2,291,064)		-		(2,291,064)
Public works			2,509,096			331,218		2,344,113		44,634		210,869		-		210,869
Community and economic development			356,450			142,299		-		76,140		(138,011)		-		(138,011)
Parks and recreation services			729,729			42,903		-		-		(686,826)		-		(686,826)
Total Governmental Activities			8,961,140			1,002,338		2,755,382		120,774		(5,082,646)		-		(5,082,646)
Business-Type Activities														(43,847)		(43,847)
Endeavor Hall			60,694			16,847		-		-		-		(43,847)		(43,847)
Total Business-Type Activities			60,694			16,847		-		-		-		(43,847)		(43,847)
Total Primary Government		$	9,021,834		$	1,019,185	$	2,755,382	$	120,774		(5,082,646)		(43,847)		(5,126,493)
					General revenues:
					Taxes:
						Property taxes						2,846,766		-		2,846,766
						Special parcel taxes						1,348,657		-		1,348,657
						Sales and use taxes						563,908		-		563,908
						Business license taxes						162,881		-		162,881
						Total Taxes						4,922,212		-		4,922,212
					Franchise fees							587,740		-		587,740
					Payments in lieu of taxes							174,443		-		174,443
					Investment income (loss)							(281,502)		-		(281,502)
					Other miscellaneous general revenues							54,512		-		54,512
					Gain (loss) on disposal of fixed assets							6,958		-		6,958
						Total general revenues and transfers						5,464,363		-		5,464,363
					Change in net position							381,717		(43,847)		337,870
					Net position - beginning, as restated							44,498,018		923,986		45,422,004
					Net position - ending						$	44,879,735	$	880,139	$	45,759,874

The accompanying notes are an integral part of the financial statements

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FUND FINANCIAL STATEMENTS

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GOVERNMENTAL FUNDS

Governmental Funds are used to account for activities primarily supported by taxes, grants, and similar revenue sources. All governmental funds can be classified into one of five fund types: the General Fund, special revenue funds, debt service funds, capital projects funds, and permanent funds.

General Fund:

The General Fund is the main operating fund of the City and is presented as a major fund. It is used to account for all financial resources except those required to be accounted for in another fund.

Special Revenue Funds:

Special revenue funds account for and report the proceeds of specific revenue sources that are restricted or committed to expenditure for specified purposes other than debt service or capital projects. The following are reported as major special revenue funds:

Landscape Maintenance District - Community Facilities District (CFD) No. 2007-1, referred to as the Landscape Maintenance District special revenue fund, accounts for real property voter-approved special parcel taxes collected to maintain arterial landscaping and open space within the City (CFD No. 2007-1 sunsets in 2027).

Successor Housing Agency - Accounts for the activities related to the assets assumed by the City of Clayton as the Housing Successor to the housing activities of the former Redevelopment Agency of the City of Clayton.

American Rescue Plan Act – Accounts for the activities related to the grant funding received from the American Rescue Plan Act.

Capital Projects Funds:

Capital projects funds are used to account for financial resources to be used for the acquisition or construction of major capital facilities other than those financed by proprietary funds. The following is the City’s sole major capital projects fund:

Capital Improvement Program - Accounts for the projects identified in the capital improvement program funded by various federal and state grants as well as through transfers from the General Fund.

Non-major Governmental Funds:

All non-major governmental funds of the City are aggregated and presented on the face of the basic financial statements in one column.

City of Clayton

Governmental Funds

Balance Sheet

June 30, 2022

					Special Revenue
				Landscape
				Maintenance		Successor
	General Fund			District	Housing Agency
ASSETS
Cash and investments	$	5,985,880	$	693,391	$	1,857,892
Accounts receivable		646,294		-		-
Interest receivable		25,257		-		-
Investment in affordable housing		-		-		3,170,453
Notes receivable		-		-		3,311,550
Prepaid items		52,578		-		-
Due from other funds		120,893		-		-
Advance to other funds		-		-		-
Total Assets			$	693,391
Total Assets	$	6,830,902	$	693,391	$	8,339,895
LIABILITIES, DEFERRED INFLOWS OF
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
Liabilities:
Accounts payable	$	1,826	$	54,858	$	-
Other payables		71,658		-		-
Accrued payroll		37		-		-
Compensated absences		83,645		-		-
Unearned revenue		-		-		-
Total Liabilities		157,166		54,858		-
Deferred Inflows of Resources:
Deferred revenue		260,379		-		2,722,200
Total Deferred Inflows of Resources				-
Total Deferred Inflows of Resources		260,379		-		2,722,200
Fund Balance:
Non-spendable		173,471		-		-
Restricted		-		32,509		5,617,695
Committed		495,019		-		-
Assigned		-		606,024		-
Unassigned		5,744,867		-		-
Total Fund Balance				638,533
Total Fund Balance		6,413,357		638,533		5,617,695
Total Liabilities, Deferred Inflows	$	6,830,902	$	693,391	$	8,339,895
of Resources and Fund Balances	$	6,830,902	$	693,391	$	8,339,895

The accompanying notes are an integral part of the financial statements

								City of Clayton
						Governmental Funds
								Balance Sheet
								June 30, 2022


				Capital Project
					Capital			Other
		American		Improvement			Governmental
	Rescue Plan Act				Program			Funds		Total
$		-	$		2,674,360	$		1,769,715	$	12,981,238
		-			-			487,021		1,133,315
		-			-			-		25,257
		-			-			-		3,170,453
		-			-			-		3,311,550
		-			-			-		52,578
		-			-			-		120,893
		-			-			-		-

	$	-		$	2,674,360		$	2,256,736	$	20,795,284

$		-	$		67,916	$		24,992	$	149,592
		-			-			2,700		74,358
		-			-			-		37
		-			-			-		83,645
		-			-			332,166		332,166
		-			67,916			359,858		639,798
		-			-			-		2,982,579

		-			-			-		2,982,579
		-			-			-		173,471
		-			-			1,069,391		6,719,595
		-			-			709,802		1,204,821
		-			2,606,444			117,685		3,330,153
		-			-			-		5,744,867

		-			2,606,444			1,896,878		17,172,907
$		-	$		2,674,360	$		2,256,736	$	20,795,284

The accompanying notes are an integral part of the financial statements

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City of Clayton

Reconciliation of Governmental Funds Balance Sheet to the

Statement of Net Position

June 30, 2022

Total Fund Balances - Governmental Funds	$	17,172,907
Amounts reported for governmental activities in the Statement of Net Position are different because:
CAPITAL ASSETS
Capital assets used in governmental activities are not current financial resources and therefore are
not reported in the Governmental Funds Balance Sheet.
Non-depreciable capital assets		3,133,754
Depreciable capital assets (net of internal service fund assets of $493,547)		25,441,841
ACCRUAL OF NON-CURRENT REVENUES AND EXPENSES
Unavailable revenue which are deferred inflows of resources in the Governmental Funds because
they are not available currently, but are taken into revenue in the statement of activities.		2,982,579
LONG-TERM ASSETS AND LIABILITIES
Long-term liabilities are not due and payable in the current period and therefore are not reported
in the Governmental Funds Balance Sheet.
Net OPEB liability not reported on the Governmental Funds Balance Sheet		(578,315)
Compensated absences payable		(83,645)
Net pension liability not reported on the Governmental Funds Balance Sheet		(2,759,739)
Lease liability not reported on the Governmental Funds Balance Sheet		(244,640)
DEFERRED INFLOWS AND OUTFLOWS
Deferred inflows/(outflows) of resources for not reported on the Governmental Funds Balance
Sheet
Deferred outflows of resources for net pension liability		1,285,641
Deferred inflows of resources for net pension liability		(2,471,384)
Deferred outflows of resources for net OPEB liability		-
Deferred inflows of resources for net OPEB liability		-
ALLOCATION OF INTERNAL SERVICE FUND NET POSITION
Internal service funds are used by management to charge the costs of certain activities to
individual funds. The assets and liabilities of the internal service funds are included in the
governmental activities in the Government-wide Statement of Net Position.		1,000,736
Net Position of Governmental Activities	$	44,879,735

The accompanying notes are an integral part of the financial statements

City of Clayton

Governmental Funds

Statement of Revenues, Expenditures and Changes in Fund Balance

For the year ended June 30, 2022

						Special Revenue
				Landscape			Successor
				Maintenance			Housing
	General Fund			District			Agency
REVENUES
Property taxes	$	2,846,766	$	-	$		-
Program income		-		-			111,400
Special parcel taxes and assessments		-		1,204,882			-
Sales and use taxes		563,908		-			-
Business licenses		162,881		-			-
Permits, licenses and fees		114,026		-			-
Fines, forfeitures and penalties		151,409		-			-
Intergovernmental		135,233		-			-
Motor vehicle in-lieu fees		-		-			-
Other in-lieu fees		174,443		-			-
Franchise fees		587,740		-			-
Service charges		305,645		-			-
Use of money and property		(185,018)		(24,383)			17,961
Other revenue		40,844		-			-
Total Revenues		4,897,877		1,180,499			129,361
EXPENDITURES
Current:
General government		2,570,417		-			-
Public safety		2,684,319		-			-
Public works		333,423		1,424,676			-
Community and economic development		299,175		-			-
Parks and recreation services		336,592		-			-
Capital outlay		22,168		161,367			-
Total Expenditures		6,246,094		1,586,043			-
Excess (Deficiency) of Revenues		(1,348,217)		(405,544)			129,361
Over (Under) Expenditures		(1,348,217)		(405,544)			129,361
OTHER FINANCING SOURCES (USES)
Unrealized gains (losses)		-		-			58,091
Transfers in		1,597,681		-			-
Transfers out		-		(41,809)			-
Total Other Financing Sources (Uses)		1,597,681		(41,809)			58,091
Net Change in Fund Balances		249,464		(447,353)			187,452
FUND BALANCES
Beginning of year, restated		6,163,893		1,085,886			5,430,243
End of fiscal year	$	6,413,357	$	638,533	$		5,617,695

The accompanying notes are an integral part of the financial statements

								City of Clayton
								Governmental Funds
		Statement of Revenues, Expenditures and Changes in Fund Balance
					For the year ended June 30, 2022


				Capital Project				Other
					Capital			Other
		American		Improvement			Governmental
	Rescue Plan Act				Program			Funds		Total
$		-	$		-	$		-	$	2,846,766
		-			-			-		111,400
		-			-			442,230		1,647,112
		-			-			-		563,908
		-			-			-		162,881
		-			-			140,326		254,352
		-			-			-		151,409
		1,467,024			-			1,170,041		2,772,298
		-			-			-		-
		-			-			-		174,443
		-			-			-		587,740
		-			-			-		305,645
		-			(80,986)			(52,490)		(324,916)
		-			-			648		41,492
		1,467,024			(80,986)			1,700,755		9,294,530
		-			-			126,650		2,697,067
		-			-			130,541		2,814,860
		-			-			383,356		2,141,455
		-			-			-		299,175
		-			-			140,808		477,400
		-			869,925			48,889		1,102,349
		-			869,925			830,244		9,532,306
		1,467,024			(950,911)			870,511		(237,776)
		-			-			-		58,091
		-			1,632,609			21,214		3,251,504
		(1,467,024)			-			(1,742,671)		(3,251,504)
		(1,467,024)			1,632,609			(1,721,457)		58,091
		-			681,698			(850,946)		(179,685)
		-			1,924,746			2,747,824		17,352,592
$		-	$		2,606,444	$		1,896,878	$	17,172,907

The accompanying notes are an integral part of the financial statements

City of Clayton

Reconciliation of Governmental Funds Statement of Revenues, Expenditures and Changes in Fund

Balances to the Statement of Activities and Changes in Net Position

For the year ended June 30, 2022

Net Change in Fund Balances - Total Governmental Funds

Amounts reported for governmental activities in the Statement of Activities are different because:

ACCRUAL OF NON-CURRENT ITEMS

The amounts below included in the Statement of Activities do not provide (or require) the use of current financial resources and therefore are not reported as revenue or expenditures in the Governmental Funds (net change).

Net change in post-employment benefits (OPEB) liability and deferred inflows (outflows) Long-term compensated absences payable

Net change in pension liability and deferred inflows (outflows).

Unavailable revenues

Net change in lease liability

CAPITAL ASSET TRANSACTIONS

Governmental Funds report capital outlays as expenditures. However in the Statement of Activities the cost of those assets is capitalized and allocated over their estimated useful lives and reported as depreciation expense.

Capital asset acquisition, excluding internal service fund asset acquisitions.

Depreciation expense is deducted from the fund balance (Net of internal service fund depreciation of $100,425).

ALLOCATION OF INTERNAL SERVICE FUND ACTIVITY

Internal service funds are used by management to charge the costs of certain activities, such as insurance and fleet management, to individual funds. The net gain or loss of the internal service funds is reported with governmental activities.

Change in Net Position of Governmental Activities on Statement of Activities

$ (179,685)

(74,942)

(745)

730,720

(113,947)

(244,640)

1,217,507

(947,745)

(4,806)

$ 381,717

The accompanying notes are an integral part of the financial statements

PROPRIETARY FUNDS

Proprietary funds account for City operations financed and operated in a manner similar to a private business enterprise. The intent of the City is that the cost of providing goods and services be financed primarily through user charges. The City’s proprietary funds can be classified into two fund types: enterprise and internal service funds.

Enterprise Funds:

Enterprise funds are used to report any activity for which a fee is charged to external users for goods or services. The following is the City’s sole major enterprise fund:

Endeavor Hall – Accounts for all rental activities related to operation of the underlying rental facility asset. The primary use of the rental facility has been for wedding receptions and other formal special events.

Internal Service Funds:

The City’s internal service funds account for activities that provide goods or services to other City funds, departments, or agencies on a cost reimbursement basis. All internal service funds of the City are aggregated and presented on the face of the proprietary fund financial statements in one column.

			City of Clayton
			Proprietary Funds
	Statement of Net Position
			June 30, 2022


		Business-type		Governmental
			Activities -		Activities -
		Endeavor Hall		Internal Service
ASSETS
Current assets:
Cash and investments	$		-	$	460,441
Noncurrent assets
Land			167,738		-
Depreciable assets, net			841,465		540,610
Total Assets			1,009,203		1,001,051
LIABILITIES
Current liabilities:
Accounts payable			2,671		315
Other payables			-		-
Deposits payable			5,500		-
Due to other funds			120,893		-
Total Liabilities			129,064		315
NET POSITION
Net investment in capital assets			1,009,203		540,610
Unrestricted			(129,064)		460,126
Total Net Position		$	880,139	$	1,000,736

The accompanying notes are an integral part of the financial statements

City of Clayton

Proprietary Funds

Statement of Revenues, Expenses and Changes in Net Position

For the year ended June 30, 2022

				Governmental
	Business-type				Activities -
		Activities -		Internal Service
	Endeavor Hall				Funds
OPERATING REVENUES
Charges for current services	$	16,847	$		111,900
Total Operating Revenues		16,847			111,900
OPERATING EXPENSES
Personnel		4,833			-
General and administrative		26,989			8,564
Depreciation and amortization		28,872			100,425
Total Operating Expenses		60,694			108,989

Operating Income (Loss)		(43,847)			2,911
NONOPERATING REVENUES (EXPENSES)
NONOPERATING REVENUES (EXPENSES)
Gain (loss) on disposal of assets		-			6,958
Investment income		-			(14,675)

Total Nonoperating Revenues (Expenses)		-			(7,717)
Net (loss) Before Contributions and
Net (loss) Before Contributions and		(43,847)			(4,806)
Operating Transfers		(43,847)			(4,806)
Capital contributions		-			-
Transfers in / (out)		-			-
Change in Net Position		(43,847)			(4,806)
NET POSITION:
Beginning of fiscal year		923,986			1,005,542

End of fiscal year	$	880,139	$		1,000,736

The accompanying notes are an integral part of the financial statements

City of Clayton

Proprietary Funds

Statement of Cash Flows

For the year ended June 30, 2022

	Business-type			Governmental
	Business-type				Activities -
		Activities -		Internal Service
CASH FLOWS FROM OPERATING ACTIVITIES:	Endeavor Hall				Funds
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from customers	$	20,847	$		111,900
Payments to suppliers		(24,734)			(4,001)
Payments to employees		(4,833)			-
Claims paid		-			(4,428)
Net cash provided (used) by operating activities		(8,720)			103,471
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES:
Transfers in / (out)		8,720			-
Net cash provided by noncapital financing		8,720			-
activities
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Acquisition of fixed assets		-			(153,184)
Proceeds from the sale of capital assets		-			6,958
Net cash provided (used) by capital and related		-			(146,226)
financing activities
CASH FLOWS FROM INVESTING ACTIVITIES:
Interest received on investments		-			(14,675)
Net Cash provided by investing activities		-			(14,675)
Net increase (decrease) in cash and cash equivalents		-			(57,430)
CASH AND CASH EQUIVALENTS:
Beginning of fiscal year		-			517,871
End of fiscal year	$	-	$		460,441
RECONCILIATION OF OPERATING INCOME
RECONCILIATION OF OPERATING INCOME
(LOSS) TO NET CASH PROVIDED (USED) BY
OPERATING ACTIVITIES:
Operating income (loss)	$	(43,847)	$		2,911
Adjustments to reconcile operating income (loss)
to net cash provided (used) by operating activities:
Depreciation and amortization		28,872			100,425
Changes in current assets and liabilities:
Increase (decrease) in accounts payable		2,255			135
Increase (decrease) in deposits payable		4,000			-
Increase (decrease) in interfund payables		-			-
Net cash provided (used) by operating activities	$	(8,720)		$	103,471

The accompanying notes are an integral part of the financial statements

FIDUCIARY FUNDS

Fiduciary funds report assets held in a trustee or agency capacity for others and therefore cannot be used to support the government’s own programs. The City’s fiduciary funds can be classified into two fund types: agency and private purpose trust funds.

Agency Funds:

Agency funds are custodial in nature (assets equal liabilities) and do not involve measurements of results of operations. They are used to account for assets held in an agency capacity for others and therefore cannot be used to support the City's program. Agency funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.

Private Purpose Trust Funds

Private purpose trust funds account for resources held by the City as trustee for third party beneficiaries, and are used to report both the Fiduciary Net Position and Changes in Fiduciary Net Position for the Successor Agency for the former Redevelopment Agency. Private Purpose Trust Funds are accounted for under the full accrual basis of accounting.

City of Clayton

Fiduciary Funds

Statement of Fiduciary Net Position

June 30, 2022

	Private Purpose
		Trust Fund
	Redevelopment
		Successor
		Agency		Agency Funds
ASSETS
Cash and investments	$	526,807	$		1,632,920
Cash and investments with fiscal agents		1			376,103
Accounts receivable		-			10,188
Other assets		-			967
Assessments receivable		-			655,931
Due from bondholders		-			182,883
Notes receivable		52,607			-
Investment in bonds		-			470,000
Total Assets		579,415			3,328,992
LIABILITIES
Accounts payable		-			16,378
Other liabilities		-			1,455,651
Deposits payable		-			774,539
Accrued interest payable		10,973			-
Advance from Successor Housing Agency		-			-
Notes payable		-			52,606
Bonds payable		1,145,000			1,029,818
Total Liabilities		1,155,973		$	3,328,992
DEFERRED INFLOWS OF RESOURCES		-
Deferred notes receivables		-
Total Deferred Inflows of Resources		-
NET POSITION		(576,558)
Held in trust for others		(576,558)
Total Net Position	$	(576,558)

The accompanying notes are an integral part of the financial statements

	City of Clayton
	Fiduciary Funds
Statement of Changes in Fiduciary Net Position
	For the year ended June 30, 2022


		Private Purpose
			Trust Fund
		Redevelopment
			Successor
ADDITIONS			Agency
ADDITIONS
Tax increment revenue	$		618,554
Program revenue			2,121
Investment gain (loss)			(15,186)
Total Additions			605,489
DEDUCTIONS
Interest expense			24,141
Administrative costs			252,179
Other expenses			-
Total Deductions			276,320
Changes in Net Position			329,169
NET POSITION

Beginning of Year

End of Year

(905,727)

$ (576,558)

The accompanying notes are an integral part of the financial statements

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FINANCIAL SECTION

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INDEPENDENT AUDITORS’

REPORT

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INDEPENDENT AUDITOR’S REPORT

To the City Council

City of Clayton, California

Report on the Audit of the Financial Statements

Opinions

Basis for Opinions

Responsibilities of Management for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards , we:

Exercise professional judgment and maintain professional skepticism throughout the audit.

Required Supplementary Information

Supplementary Information

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MANAGEMENT’S DISCUSSION AND ANALYSIS

FINANCIAL HIGHLIGHTS - PRIMARY GOVERNMENT Government -Wide Highlights

Major Fund Highlights

General Fund - The unassigned fund balance of the General Fund on June 30, 2022 was $5,744,867, while the non-spendable and committed fund balances were $173,471 and $495,019 respectively.

OVERVIEW OF THE FINANCIAL STATEMENTS

Government-wide Financial Statements

The government-wide financial statements are designed to provide readers with a broad overview of the City of Clayton's finances, in a manner similar to a private-sector business.

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Government-wide Financial Statements, Continued

Fund Financial Statements

Governmental Funds

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Fund Financial Statements, Continued

Proprietary Funds

Fiduciary Funds

Notes to the Financial Statements

OVERVIEW OF THE FINANCIAL STATEMENTS, Continued Other Information

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS Analysis of Overall Net Position and Results of Operations

					Business-			Business-
	Governmental		Governmental			Type		Type
		Activities		Activities	Activities			Activities		Total		Total
Assets		2022		2021		2022		2021		2022		2021
Assets
Current Assets	$	14,773,722	$	14,812,813	$	(120,893)	$	(112,174)	$	14,652,829	$	14,700,639
Noncurrent Assets		6,482,003		6,462,021		-		-		6,482,003		6,462,021
Capital Assets		29,116,205		28,793,685		1,009,203		1,038,076		30,125,408		29,831,761
Total Assets
Total Assets		50,371,930		50,068,519		888,310		925,902		51,260,240		50,994,421

Deferred outflows		1,285,641		1,051,589		-		-		1,285,641		1,051,589
Liabilities
Current Liabilities		640,113		362,937		8,171		1,916		648,284		364,853
Noncurrent Liabilities		3,666,339		5,944,104		-		-		3,666,339		5,944,104
Total Liabilities
Total Liabilities		4,306,452		6,307,041		8,171		1,916		4,314,623		6,308,957

Deferred inflows		2,471,384		369,961		-		-		2,471,384		369,961
Net Position
Net investment in
capital assets		29,116,205		28,793,685		1,009,203		1,038,076		30,125,408		29,831,761
Restricted		9,890,048		13,156,670		-		-		9,890,048		13,156,670
Unrestricted		5,873,482		2,492,751		(129,064)		(114,090)		5,744,418		2,378,661
Total net position
Total net position	$	44,879,735	$	44,443,106	$	880,139	$	923,986	$	45,759,874	$	45,367,092

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Overall Net Position and Results of Operations, Continued

The following is a recap of the City’s Statement of Activities and Changes in Net Position for the fiscal years ended June 30, 2022 and June 30, 2021:

							Business-		Business-
	Governmental		Governmental				Type		Type
		Activities			Activities		Activities		Activities		Total		Total
Revenues:		2022			2021		2022		2021		2022		2021
Revenues:
Program revenues:
Charges for Services	$	1,002,338	$		961,910	$	16,847	$	(1,442)	$	1,019,185	$	960,468
Operating grants and contributions		2,755,382			893,718		-		-		2,755,382		893,718
Capital grants and contributions		120,774			42,363		-		-		120,774		42,363
Total program revenues
Total program revenues		3,878,494			1,897,991		16,847		(1,442)		3,895,341		1,896,549
General revenues:
Property taxes		2,846,766			2,722,906		-		-		2,846,766		2,722,906
Special parcel taxes		1,348,657			1,309,373		-		-		1,348,657		1,309,373
Sales and use taxes		563,908			510,029		-		-		563,908		510,029
Business license taxes		162,881			90,872		-		-		162,881		90,872
Franchise fees		587,740			567,350		-		-		587,740		567,350
Payments in lieu of taxes		174,443			171,029		-		-		174,443		171,029
Investment income		(281,502)			508,256				(379)		(281,502)		507,877
Miscellaneous		54,512			38,972		-		-		54,512		38,972
Gain (loss) on sale of assets		6,958			1,741		-		-		6,958		1,741
Total general revenues
Total general revenues		5,464,363			5,920,528				(379)		5,464,363		5,920,149
Total revenues
Total revenues		9,342,857			7,818,519		16,847		(1,821)		9,359,704		7,816,698
Expenses:
General government		2,629,048			1,796,454		-		-		2,629,048		1,796,454
Public works		2,509,096			2,909,710		-		-		2,509,096		2,909,710
Public safety		2,736,817			2,980,000		-		-		2,736,817		2,980,000
Community and economic
development		356,450			357,133		-		-		356,450		357,133
Parks and recreation services		729,729			592,433		-		-		729,729		592,433
Endeavor Hall		-			-		60,694		73,117		60,694		73,117
Total expenses
Total expenses		8,961,140			8,635,730		60,694		73,117		9,021,834		8,708,847

Change in Net Position		381,717			(817,211)		(43,847)		(74,938)		337,870		(892,149)
Net Position – Beginning, restated
Net Position – Beginning, restated		44,498,018			45,260,317		923,986		998,924		45,422,004		46,259,241
Net Position – ending
Net Position – ending	$	44,879,735		$	44,443,106	$	880,139	$	923,986	$	45,759,874	$	45,367,092

FINANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities

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Government Activities

Expenses by Function

3,500,000

3,000,000

2,500,000

2,000,000

1,500,000

1,000,000

500,000

General

Government

Public Safety

Public Works Community Parks and

and Economic Recreation

Development Services

Fiscal Year 2021

Fiscal Year 2022

F INANCIAL ANALYSIS GOVERNMENT-WIDE STATEMENTS, Continued Analysis of Governmental Activities, Continued

A graph with red and blue bars Description automatically generated

Governmental Activities
Revenues by Source
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
$(1,000,000)
Fiscal Year 2021	Fiscal Year 2022

Analysis of Business-Type Activities

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS Analysis of Governmental Funds

General Fund

Below is a summary of the General Fund expenditures by department.

						Pandemic
				Rainy		Recovery
General government	General Fund			Day Fund		Reserve		Total
General government	$	1,447,700	$	26,000	$	1,096,717	$	2,570,417
Public safety		2,684,319		-		-		2,684,319
Public works		333,423		-		-		333,423
Community and
economic development		299,175		-		-		299,175
Parks and recreation
services		336,592		-		-		336,592
Capital outlay		22,168		-		-		22,168
Total expenditures	$	5,123,377	$	26,000	$	1,096,717	$	6,246,094

Landscape Maintenance District

FINANCIAL ANALYSIS OF INDIVIDUAL FUND STATEMENTS, Continued Analysis of Governmental Funds, Continued

Successor Housing Agency

Capital Improvement Program

Analysis of Proprietary Funds

GENERAL FUND BUDGETARY HIGHLIGHTS

GENERAL FUND BUDGETARY HIGHLIGHTS, Continued

CAPITAL ASSET AND DEBT ADMINISTRATION Capital Assets

Debt Administration

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET

City of Clayton

Management’s Discussion and Analysis

For the year ended June 30, 2022

ECONOMIC FACTORS AND NEXT YEAR’S BUDGET, Continued

REQUEST FOR INFORMATION

GOVERNMENT-WIDE

FINANCIAL STATEMENTS

City Of Clayton, California
Government Wide
Statement Of Net Position
June 30, 2022

City Of Clayton, California
Government Wide
Statement Of Activities
For The Year Ended June 30, 2022

City Of Clayton, California
Governmental Funds
Balance Sheet
June 30, 2022

City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position
June 30, 2022

City Of Clayton, California
Governmental Funds
Statement Of Revenues, Expenditures And Changes In Fund Balance
For The Year Ended June 30, 2022

City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures, And Changes In Fund Balances To The Statement Of Activities And Changes In Net Position
For The Year Ended June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Net Position
June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Revenues, Expenses, And Changes In Net Position
For The Year Ended June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Cash Flows
For The Year Ended June 30, 2022

Independent Auditor’s Report

Report on the Audit of the Financial Statements

Opinions

Basis for Opinions

Emphasis of Matter

Responsibilities of Management for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

Required Supplementary Information

Supplementary Information

City Of Clayton, California Government Wide Statement Of Net Position June 30, 2022

City Of Clayton, California Government Wide Statement Of Activities For The Year Ended June 30, 2022

City Of Clayton, California Governmental Funds Balance Sheet June 30, 2022

City Of Clayton, California Governmental Funds Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position June 30, 2022

City Of Clayton, California Governmental Funds Statement Of Revenues, Expenditures And Changes In Fund Balance For The Year Ended June 30, 2022

City Of Clayton, California Governmental Funds Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures, And Changes In Fund Balances To The Statement Of Activities And Changes In Net Position For The Year Ended June 30, 2022

City Of Clayton, California Proprietary Funds Statement Of Net Position June 30, 2022

City Of Clayton, California Proprietary Funds Statement Of Revenues, Expenses, And Changes In Net Position For The Year Ended June 30, 2022

City Of Clayton, California Proprietary Funds Statement Of Cash Flows For The Year Ended June 30, 2022

Independent Auditor’s Report

Report on the Audit of the Financial Statements

Opinions

Basis for Opinions

Emphasis of Matter

Responsibilities of Management for the Financial Statements

Auditor’s Responsibilities for the Audit of the Financial Statements

Required Supplementary Information

Supplementary Information

City Of Clayton, California
Government Wide
Statement Of Net Position
June 30, 2022

City Of Clayton, California
Government Wide
Statement Of Activities
For The Year Ended June 30, 2022

City Of Clayton, California
Governmental Funds
Balance Sheet
June 30, 2022

City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Balance Sheet To The Statement Of Net Position
June 30, 2022

City Of Clayton, California
Governmental Funds
Statement Of Revenues, Expenditures And Changes In Fund Balance
For The Year Ended June 30, 2022

City Of Clayton, California
Governmental Funds
Reconciliation Of Governmental Funds Statement Of Revenues, Expenditures, And Changes In Fund Balances To The Statement Of Activities And Changes In Net Position
For The Year Ended June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Net Position
June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Revenues, Expenses, And Changes In Net Position
For The Year Ended June 30, 2022

City Of Clayton, California
Proprietary Funds
Statement Of Cash Flows
For The Year Ended June 30, 2022